Netflix Hires A.I. to Track Customers

Skynet is tracking you if you are a Netflix subscriber. OK, it’s not really steel robots with automatic weapons kicking in your door for violating their terms of service but it’s close.

Skynet is coming

The way it works, is that streaming service companies hire the UK firm Synamedia that uses AI, behavioral analytics and machine learning to monitor and analyse password sharing activity across user accounts, identify the rule breakers and detect the fine line between finding account sharers and harassing a customer.
“For example, the solution can determine whether users are viewing at their main home and a holiday home, or whether they have shared credentials with friends or grown-up children who live away from home.

If You Share Netflix Password With Others, an AI Could Hunt You Down

If you let your kids watch your Netflix account, they may be looking for you.

Research quoted by Synamedia reported that younger generations are used to accessing streaming services for free and rarely become paying customers.
The company revealed that 26% of millennials share passwords for video streaming services, while economic predictions indicate that in 2021, $9.9 billion of pay-tv revenues and $1.2 billion of over-the-top media services (OTT) revenues will be lost to credentials sharing.
“Casual credentials sharing is becoming too expensive to ignore. Our new solution gives operators the ability to take action. Many casual users will be happy to pay an additional fee for a premium, shared service with a greater number of concurrent users. It’s a great way to keep honest people honest while benefiting from an incremental revenue stream,” said Jean Marc Racine, CPO and GM EMEA of Synamedia.

Netflix and other streaming services know what you are watching and where you watch (via your network I.P. address) so why the third party tracking? Perhaps the A.I. will automatically notify you and send you a bill to upgrade your account to make what you watch legit? It’s not like they don’t use other algorithms and A.I. on your account, how do you think they get the 98 percent match on the suggested show?

Why is this sharing of data OK when Facebook is in deep doo-doo for sharing data with third party folks like Cambridge Analytica? The sharing by both companies was done in exchange for revenue and increased viewers, thus enhancing their stock value. Facebook’s only crime was that they did something that might have benefitted Republicans and for that they must be punished.

Which brings me to the other tech article of the day that is worth a read. It is published by the Hollywood Reporter. The article concerns a unique lawsuit against Facebook for the Cambridge Analytica story.

Cambridge Analytica parlayed its modest access to the lives of ordinary Facebook users and their family and friends into more and more information — enough to begin psychologically profiling American voters and then bombarding them with phony and real news.
And Facebook’s role?
“This kind of mass data collection was not only allowed but encouraged by Facebook, which sought to keep developers building on its platform and provide companies with all the tools they need to influence and manipulate user behavior,” states the March 23 lawsuit filed by Edelson. “That’s because Facebook is not a social media company; it is the largest data-mining operation in existence.”

What makes the Edelson lawsuit different is a name barely anyone knows: Kimberly Foxx, a state’s attorney, the top prosecutor in Cook County, Illinois. Edelson is ostensibly representing the people of Illinois through Foxx on a claim that Facebook engaged in unfair and deceptive conduct. Or, stated another way, a government official has outsourced law enforcement to a class-action attorney.
Edelson, having now been given the role of a Special Assistant State’s Attorney thanks to possessing the “required legal expertise,” as a court order confirming his appointment put it, aims to punish Facebook for violating The Illinois Consumer Fraud and Deceptive Business Practices Act. It carries massive repercussions, including $50,000 in civil penalties per violation, injunctive relief and — if egregious circumstances call for it — a lost business license to operate in the state. That’s right. Theoretically, Facebook could pay billions and be prohibited from offering its service in Illinois if it loses this lawsuit.

What if law enforcement was outsourced to class action attorneys? Don’t imagine. It’s happening as the Cambridge Analytica scandal becomes Mark Zuckerberg’s legal nightmare.

Edelson’s claim that “Facebook is not a social media company; it is the largest data-mining operation in existence” does make me wonder how he would describe Google or all the apps and devices reporting to your personal data to China or our National Security Agency—after all they are the only part of our government that listens.

Privacy in our society is an illusion; one I may discuss on another occasion.

Are You Living With Debt

An old pastor once told me that the word “mortgage” is from two Latin words; “mort” meaning death like in mortuary and “gage” meaning grip, thus a mortgage was a “death grip”. This is what I thought of when I say this headline today:

1 in 5 millennials with debt expect to die without ever paying it off

The average millennial (aged 18 to 34) had about $32,000 in personal debt, excluding home mortgages, last year, according to Northwestern Mutual’s 2018 Planning & Progress Study. That debt can feel both crushing — and endless.
Just over 60 percent of millennials (classified here as those aged 18-37) with debt don’t know when, or if, they’ll ever be able to pay off what they owe, according to a new CreditCards.com report. That includes roughly 42 percent of millennials who don’t know when they’ll be able to wipe out their debt, and almost 20 percent of those who expect to die in debt.

Expecting to die with debt is not a formula or mindset for success. No wonder so many say they prefer socialism. This blog is about hope for the hopeless.

The above article, without attribution, then proceeds to list several of Dave Ramsey’s “baby steps” for getting out of debt. Ramsey has 7 steps to getting out of debt.
1 Save $1,000 to start an emergency Fund
2 Payoff all debt (except mortgage) using debt snowball
3 save 3-6 months of expenses
4 invest 15% in retirement
5 save for child’s college fund
6 pay off your home
7 Build wealth and give

Dave Ramsey–Baby Steps

Dave Ramsey–Card Cutter

I can attest that following Ramsey’s advice will put you on the path to financial freedom. The cornerstone of his plan is the Emergency Fund. By putting this money away, you have a pool of cash to use for car repairs, new tires, fixing the dishwasher, unplugging the drain, or whatever else life throws at you without reaching for the “magic plastic”.

As you are saving this Emergency Fund, Ramsey asks people to cut-up their credit cards and use their Emergency Fund instead. Then replenish the money so you keep the fund available.

If you are married, it is vital that both of you agree on this course of action. Deciding to get out of debt must be a joint decision. You must be working together and not be unequally yoked to this idea. Nothing is more divisive in a marriage than fighting about money. To get both of you on the same page with getting debt free, Ramsey has classes that he offers called Financial Peace University. The cost of materials is about $100 but worth it.

Financial Peace Kit

My wife and I attended the Financial Peace classes at a local church about five years ago. I didn’t really know what to expect but found the classes helpful. The classes are held over several weeks. Part of the class is viewing Ramsey and some others, often his daughter, via a DVD presentation. The class facilitators also do various exercises with those attending, many of these are as groups. When we attended, there were eight or nine families. Any worksheets involving money are anonymous although those leading the group many have an idea who wrote which numbers.

The exercise that really got my attention was the one at the beginning where everybody listed their debts and then turned the number into the facilitators. This is part of a before v after comparison designed to show progress towards the baby steps of establishing an Emergency Fund and starting to pay off debt via a “snowball”. It was shocking when the total debt in the room was announced—remember this figure did not count anything owed on a home. Over half of the debt in the room belonged to me and my wife! It was a sobering moment.

Since that night we have paid-off over $100,000 of that original debt and the remaining balance will be gone before the end of 2019. Truthfully, we don’t stick with the snowball as religiously as we could. We still allow for vacations and a few wants. We are honest enough to distinguish between “wants” and “needs”; however, we always pay cash.

A word of caution, when you start cancelling credit cards, the offers begin pouring into your mailbox. Ramsey is a big advocate of going “cold turkey” on the plastic. Cut it up, throw it away, and never look back. Your dealers, Wells Fargo, Citibank, Discover, Golden 1, Chase, Amazon, Costco, etc., will really miss their 24 percent payment each month and offer you even more debt to come back.

If this is the MasterCard, guess who’s the slave?

I think of it as free drugs from the dealer just to get you hooked again. Two percent cash back is still 22 percent to the dealer so exactly how is that a bargain? Buy the heroine and get free needles? Oops, not blogging about San Francisco today.

Anyway, if you are up to your eyeballs in debt, there really is hope and a support network should you need it. Yes, your lifestyle may change as you learn to live within your means but freedom has always had a price. The only thing better than being debt free is teaching your children to learn from your mistakes and showing them a better way.

Since starting down this path, we are optimistic about our future. How many of you still paying for DirecTV so you can watch Fox News and CNN can say the same?