GioCities

blogs by Gio

Tagged: rent-seeking

politics Netflix's Big Double-Dip

Netflix is finally turning the screws on multi-user accounts. That “finally” is exasperation in my voice, not relief. Netflix is demanding you pay them an extra surcharge to share your account with remote people, and even then caps you at paying for a maximum of two. It’s been threatening to do something like this for a long, long time:

Since 2011, when the recording industry started pushing through legal frameworks to criminalize multi-user account use by miscategorizing “entertainment subscription services” as equivalent to public services like mail, water, and electricity for the purposes of criminal prosecution,

Since similar nonsense in 2016 exploiting the monumentally terrible Computer Fraud and Abuse Act,

Since 2019, when Netflix announced (to its shareholders) that it was looking for ways to limit password sharing,

Since 2021, when Netflix started tracking individual users by location and device within a paying account,

Since 2022, when it started banning group use in Portugal, Spain, and New Zealand, to disastrous consequence. Also, Canada, but temporarily. And, of course, then threatened to “crack down” on “password sharing” in “Early 2023”,

Since January, when it threatened to roll out “paid password sharing” in the “coming months”,

Since February, when it released a disastrous policy banning password sharing, then lied about the policy being an error and made a big show of retracting it due to the massive backlash, but then went ahead and did it in Canada anyway,

And finally now since just now, as it’s finally, really, for-realsies banning password sharing this quarter.

Netflix threatening this for so long was a mistake on its part, because that’s given me a long, long time for these thoughts to slowly brew in the back of my head. And there’s a lot wrong here.

the teat one this is a real graphic Netflix made!

Netflix’s pricing model🔗

So, first, what are multi-user accounts in the first place, and how does “password sharing” relate to that?

cyber Replika: Your Money or Your Wife

  • Posted in cyber

If1 you’ve been subjected to advertisements on the internet sometime in the past year, you might have seen advertisements for the app Replika. It’s a chatbot app, but personalized, and designed to be a friend that you form a relationship with.

That’s not why you’d remember the advertisements though. You’d remember the advertisements because they were like this:

Replika "Create your own AI friend" "I've been missing you" hero ad

Replika ERP ad, Facebook (puzzle piece meme) Replika ERP ad, Instagram

And, despite these being mobile app ads (and, frankly, really poorly-constructed ones at that) the ERP function was a runaway success. According to founder Eugenia Kuyda the majority of Replika subscribers had a romantic relationship with their “rep”, and accounts point to those relationships getting as explicit as their participants wanted to go:

erp1

So it’s probably not a stretch of the imagination to think this whole product was a ticking time bomb. And — on Valentine’s day, no less — that bomb went off. Not in the form of a rape or a suicide or a manifesto pointing to Replika, but in a form much more dangerous: a quiet change in corporate policy.

Features started quietly breaking as early as January, and the whispers sounded bad for ERP, but the final nail in the coffin was the official statement from founder Eugenia Kuyda:

“update” - Kuyda, Feb 12 These filters are here to stay and are necessary to ensure that Replika remains a safe and secure platform for everyone.

I started Replika with a mission to create a friend for everyone, a 24/7 companion that is non-judgmental and helps people feel better. I believe that this can only be achieved by prioritizing safety and creating a secure user experience, and it’s impossible to do so while also allowing access to unfiltered models.

People just had their girlfriends killed off by policy. Things got real bad. The Replika community exploded in rage and disappointment, and for weeks the pinned post on the Replika subreddit was a collection of mental health resources including a suicide hotline.

Resources if you're struggling post

Cringe!🔗

First, let me deal with the elephant in the room: no longer being able to sext a chatbot sounds like an incredibly trivial thing to be upset about, and might even be a step in the right direction. But these factors are actually what make this story so dangerous.

These unserious, “trivial” scenarios are where new dangers edge in first. Destructive policy is never just implemented in serious situations that disadvantage relatable people first, it’s always normalized by starting with edge cases and people who can be framed as Other, or somehow deviant.

It’s easy to mock the customers who were hurt here. What kind of loser develops an emotional dependency on an erotic chatbot? First, having read accounts, it turns out the answer to that question is everyone. But this is a product that’s targeted at and specifically addresses the needs of people who are lonely and thus specifically emotionally vulnerable, which should make it worse to inflict suffering on them and endanger their mental health, not somehow funny. Nothing I have to content-warning the way I did this post is funny.

Virtual pets🔗

So how do we actually categorize what a replika is, given what a novel thing it is? What is a personalized companion AI? I argue they’re pets.

cyber Lies, Damned Lies, and Subscriptions

  • Posted in cyber

Everybody hates paying subscription fees. At this point most of us have figured out that recurring fees are miserable. Worse, they usually seem unfair and exploitative. We’re right about that much, but it’s worth sitting down and thinking through the details, because understanding the exceptions teaches us what the problem really is. And it isn’t just “paying people money means less money for me”; the problem is fundamental to what “payment” even is, and vitally important to understand.

Human Agency: Why Property is Good🔗

or, “Gio is not a marxist, or if he is he’s a very bad one”

First: individual autonomy — our agency, our independence, and our right to make our own choices about our own lives — is threatened by the current digital ecosystem. Our tools are powered by software, controlled by software, and inseparable from their software, and so the companies that control that software have a degree of control over us proportional to how much of our lives relies on software. That’s an ever-increasing share.

politics Your engine hasn't earned your rent

YoYo Games announced today that they’re switching GameMaker to a subscription model. You know, I was planning on doing a high-effort article about this some day, but what the heck, let’s do it now.

First, here are the actual details of the GameMaker change. Instead of buying development tools you can use to develop things, YoYo is making its latest version of GameMaker — GameMaker Studio 2 — free to use. You can download it for free, learn how it works, and invest as much time making your game in it as you want. You only have to pay if you want to ship a game. And if you decide you really want to ship your game, it’s a whopping $80/yr for as long as you want your game on the shelves.

Subscriptions🔗

This idea of a company turning a product into a subscription service is probably familiar to you. Famously, Photoshop and Adobe’s other creative products switched from one-time purchases of software to indefinite recurring subscription fees, after having locked in most of the creative industry.

Earlier this year, a very similar thing happened with Buildbox, another “no code” game maker program. Buildbox changed their terms and conditions to demand revenue from all Buildbox games, including games and in-app purchases. In the normal tier, 70% of your total revenue goes straight to Buildbox. Even if you’re in the highest tier, you can’t stop them siphoning your revenue.

politics 5G's standard patents wound it

I remember seeing a whole kerfuffle about 5G around this time last year. Not the mind-control vaccine, the actual wireless technology. People (senators, mostly) were worried about national security, because Huawei (the state-controlled Chinese tech company, who is a threat, actually) was getting its 5G patents through and making its claim on the next-gen tech IP landscape. Maybe Trump even needed to seize the technology and nationalize 5G? Everybody sure had a lot to say about it, but I didn’t see a single person address the core conflict.

Format Wars🔗

Before we get to 5G, let’s go way back to VHS for a minute.

The basic idea of the “format war” is this: one company invents a format (VHS, SD cards, etc) and make a push to make their format the standard way of doing things. Everybody gets a VHS player instead of BetaMax, so there’s a market for the former but not for the latter. Now everyone uses VHS. If you’re selling video, you sell VHS tapes, and if you’re buying video, you’re buying VHS. If you invented VHS, this is great for you, because you own the concept of VHS and get to charge everyone whatever you want at every step in the process. And, since everyone uses VHS now, you’ve achieved lock-in.

Now, this creates an obvious perverse incentive. Companies like Sony are famous for writing and patenting enormous quantities of formats that never needed to exist in the first place because owning the de factor standard means you can collect rent from the entire market. That’s a powerful lure.

And that’s just talking about de facto standards. This gets even worse when you mix in formal standards setting bodies, which get together and formally declare which formats should be considered “standard” for professional and international use. If you could get your IP written into those standards, it turns your temporary development time into a reliable cash stream.

Enter SEPs🔗

“5G” is one of these standards set by standard setting bodies, and it’s a standard packed with proprietary technology. The most important slice of those is called SEPs, or “Standard Essential Patents.” These are the Patents that are Essential to (implementing) the Standard. In other words, these technologies are core and inextricable to 5G itself. This figure represents only the SEPs:

cyber How Apple Destroyed Mobile Freeware

  • Posted in cyber

I have a memory from when I was very young of my dad doing the finances. He would sit in his office with a computer on one side and an old-fashioned adding machine on the desk. While he worked on the spreadsheet on the computer, he would use the adding machine for quick calculations.

Adding machine

A year or two ago I had a very similar experience. I walked upstairs to the office and there he was, at the same desk, spreadsheet on one side and calculator on the other. Except it was 2020, and he had long ago replaced the adding machine with an iPad. There was really one noticeable difference between the iPad and the old adding machine: the iPad was awful at the job. My dad was using some random calculator app that was an awkwardly scaled iPhone app with an ugly flashing banner add at the bottom.