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Greetings, Insiders! Here are the latest Tech headlines for today: - The FCC has voted to advance a plan for restoring net neutrality rules.
- Netflix is raising prices as it gains more subscribers.
- Tesla will make its first Cybertruck deliveries next month.
If you find this newsletter useful, please share it with your friends and colleagues. Thank you! Beth
p/beth-duckett | |
| 1 | Today, the FCC voted 3-2 along party lines to move forward with a plan to restore net neutrality protections from the Obama era. The move, supported by the FCC's new Democratic majority, could reclassify high-speed internet as a utility, preventing broadband providers from blocking or slowing down the internet and requiring equal treatment of all data traffic. More: - The proposal adopted today seeks to reestablish the FCC's authority over broadband internet access by classifying it as a Title II telecommunications service.
- The move would reinstate the 2015 framework that was repealed in 2017 under the Trump administration, giving the FCC new authority to regulate internet providers for net neutrality violations.
- The commission is now seeking comments from the public and stakeholders, targeting a final vote in 2024 to potentially reinstate the protections by next spring.
Zoom out: - President Biden's push for net neutrality restoration has been delayed until the recent appointment of a third Democratic commissioner, Anna Gomez.
- Telecom companies and Republicans oppose the proposal, saying that it will burden broadband providers.
- Republican Commissioner Brendan Carr argued that broadband services had improved without regulation and criticized the proposal as counterproductive for consumers.
Q: Do you believe that high-speed internet should be classified as a utility? Join the discussion here. |     | |
| 2 | | Netflix is once again raising its prices, with its Basic plan moving from $10 to $12 and Premium increasing from $20 to $23 in the U.S. Despite ongoing price increases, the streamer managed to gain nearly 9 million subscribers in Q3, marking its biggest growth in three years. 
Price increases: As of today, Netflix has raised prices for its Basic and Premium plans. The ad-supported and Standard plans will remain at $7 and $15.49, respectively. The company justified the price hike by saying it helps add value for its viewers and that its starting price is still competitive compared to other streaming services. New subscribers: In the third quarter, Netflix added 8.76 million new subscribers, pushing its global total to 247.15 million — a 10% increase year-over-year. Notably, Europe, the Middle East, and Africa added nearly 4 million subscribers. Over 70% of Netflix's global membership now resides outside of the U.S. Additionally, Netflix's ad-supported plan surged almost 70% quarter over quarter and now represents roughly 30% of all new sign-ups in the 12 countries where it's available. Netflix attributed the robust subscriber growth to its successful crackdown on password sharing and the popularity of its ad-supported plan. | | | |
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| 3 | | Tesla has confirmed that the Cybertruck's first deliveries will take place on Nov. 30 at its Gigafactory in Austin, Texas. During Tesla's Q3 earnings call, CEO Elon Musk said he wanted to "temper expectations" for the electric pickup, adding that the company could face "enormous challenges" ramping up production and making the truck cash-flow positive. More: - Pricing details for the electric pickup, originally estimated at $39,900 in 2019, will also be revealed at the event.
- Musk confirmed that more than 1 million people have reserved the truck, which has faced multiple production delays exacerbated by the pandemic.
- Tesla could reach annual production of about 250,000 Cybertrucks, but maybe not until 2025. The truck could take around 18 months to become profitable after its launch, he said.
- "And I think it is our best product ever, but it is going to require immense work to reach volume production and be cash flow positive at a price that people can afford," Musk said.
Earnings: - Tesla's shares fell over 9% on Thursday following disappointing Q3 results.
- Its quarterly earnings of $0.66 per share, the lowest in two years, and revenue of $23.35B both missed Wall Street estimates.
- Tesla's operating margin fell to 7.6% from 17.2% the year prior.
- Profitability has been impacted by a drop in vehicle selling prices, adverse foreign exchange rates, and rising operating expenses linked to projects like the Cybertruck and AI.
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| 4 | | Nokia said it plans to cut up to 14,000 jobs over three years following a sharp drop in third-quarter earnings. The Finnish telecom leader plans to trim its workforce from 86,000 to potentially as few as 72,000 as part of a broader cost-cutting reorg. More: - Nokia says the layoffs will cut staffing costs by 10% to 15%, saving a minimum of €400M ($421.4M) in 2024.
- The company is targeting cost savings of €800M to €1.2B ($1.3B) by 2026.
- Nokia reported a 20% decline in Q3 sales amid a weaker demand for 5G equipment. Profit during that period plummeted by 69% compared to the previous year.
- Nokia, once a leader in mobile phones, shifted to telecom infrastructure after selling its phone division to Microsoft in 2013.
Zoom out: - Ericsson, a rival telecom, also announced plans to lay off 8,500 employees earlier this year.
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| 5 | | New York's attorney general is suing three cryptocurrency companies for allegedly deceiving investors and causing over $1B in losses. The lawsuit takes aim at Gemini Trust, managed by the Winklevoss twins, as well as Genesis Capital, and its parent company, Digital Currency Group (DCG). More: - An investigation found that Gemini, founded by Cameron and Tyler Winklevoss, misled investors about the substantial risks tied to its joint lending service with Genesis.
- The service, Gemini Earn, billed itself as a low-risk investment allowing customers to lend crypto assets to Genesis while earning interest payments of up to 8%.
- The AG's lawsuit claims Gemini was aware of the high risk associated with Genesis' loans and, at one point, the fact that it was heavily tied to FTX founder Sam Bankman-Fried's crypto trading firm, Alameda Research.
Zoom out: - Once a crypto billionaire, Bankman-Fried faces allegations of diverting billions from FTX customers to bolster his hedge fund, Alameda, as well as for political donations, real estate investments, charitable contributions, and other personal expenses.
- He was charged with seven criminal counts, including wire fraud, securities fraud, and money laundering.
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| 6 | | Amazon is experimenting with new AI and robotics technologies to improve automation at its warehouses. The company said it's trying out two new robots, Sequoia and Digit, to keep workers safe and speed up deliveries. More: - Digit, a bipedal robot developed by Agility Robotics, can perform various physical tasks like squatting, bending, and grasping items.
- Initially, Amazon will begin testing Digit to help warehouse employees with tote recycling.
- Meanwhile, Sequoia is a robotic inventory processing system that was recently rolled out at an Amazon warehouse in Houston.
- Sequoia combines different robotics and technology systems, including mobile bots, gantries, robot arms, and more ergonomic workstations.
- The AI tech sorts inventory into containers for employees, potentially boosting product retrieval speed by 75% and order fulfillment by 25%, per the Wall Street Journal.
Zoom out: - Amazon said it now has a workforce of over 750,000 robots, which work in tandem with human employees to manage more repetitive tasks.
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- Universal Music Group and other publishers are suing AI company Anthropic over copyrighted lyrics via its AI model Claude 2, claiming the chatbot replicates songs and generates similar phrases.
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 | AI and technology writer | | Beth is an editor and writer of Inside's AI and Tech newsletters, with a career spanning journalism since 2007. She has written for publications including The Arizona Republic and USA Today and authored a book on the solar industry in 2016. Reach her at Beth.Duckett@yahoo.com. | | This newsletter was edited by Eduardo Garcia | |
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