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merger

Paramount-Warner Bros. Discovery Merger Hit With Multistate Antitrust Lawsuit

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A coalition of 12 state attorneys general sued Monday to stop Paramount Skydance’s planned acquisition of Warner Bros. Discovery, arguing that the merger would reduce competition across the film, television, streaming and cable industries.

The transaction is valued at approximately $111 billion, making it one of the largest media mergers ever proposed. The states’ case also focuses specifically on the market for “tentpole” films, costly blockbuster releases that generate a significant share of major studios’ revenue.

The antitrust lawsuit was filed in the U.S. District Court for the Northern District of California and is led by California Attorney General Rob Bonta. Attorneys general from Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon and Washington also joined the case.

“The unlawful merger of these two entertainment behemoths would lead to higher prices, lower quality, and less content for film and television, harming movie theaters, basic cable distributors, and ultimately, audiences on every sofa and movie theater seat in the U.S.,” Bonta said in a release.

“The coalition has asked Warner Bros. and Paramount not to close the merger until after the judicial process concludes, and if they do not agree, the coalition will be filing a temporary restraining order.”

Paramount pushed back against the allegations, saying it was willing to address genuine competition concerns but did not believe the WBD transaction presented any.

“We are confident the facts and the law support this transaction, and we will continue to defend it vigorously,” a Paramount spokeswoman said.

The lawsuit represents the most substantial remaining legal threat to the merger in the United States after the Antitrust Division of the U.S. Department of Justice completed its review in mid-June and declined to challenge the deal.

“The Division has completed its analysis of the proposed merger of Paramount and Warner Bros. and determined based on the evidence received in its investigation that the transaction is not likely to result in harm to competition or American consumers.”

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The states’ action also reflects a broader effort by state attorneys general to pursue antitrust cases independently as federal regulators under President Donald Trump have approved major transactions or settled other competition lawsuits.

In April, state officials obtained a restraining order temporarily halting the proposed combination of broadcasters Nexstar and Tegna. That same month, a coalition of states secured a jury verdict finding that Live Nation, the owner of Ticketmaster, had operated as a monopoly after the Justice Department settled its portion of the case.

Internationally, Paramount has received clearance from more than 20 countries and regions, including China and Australia. The European Union is still reviewing the transaction, however, and the European Commission has set a new provisional deadline of July 22.

The commission said in a public filing this month that Paramount had submitted concessions intended to address concerns about the merger. Britain is also among the jurisdictions that have not yet approved the acquisition, and a British government official said in June that the country was leaning toward conducting its own examination.

If completed, the merger would unite Paramount and Warner Bros., two of Hollywood’s oldest and most recognizable film studios, under one corporate owner. It would also combine the companies’ major streaming services, Paramount+ and HBO Max.

The deal would create the largest collection of television networks in the United States. Paramount’s portfolio includes the CBS broadcast network and cable channels such as MTV and BET, while Warner Bros. Discovery owns CNN, TNT and several other major networks. The resulting company would bring CBS News and CNN under a single media organization.

In their lawsuit, the states pointed to the scale of the proposed company, alleging that it would control nearly one-third of the film market and close to one-third of basic cable television programming.

Paramount has argued that a company of that size is necessary to compete with streaming heavyweights such as Netflix and Amazon. It has also said that savings from combining the two businesses would allow it to spend more on programming and deliver stronger content to consumers.

Concerns about the transaction have grown across Hollywood, where actors, documentary filmmakers and producers have warned that further consolidation could lead to fewer theatrical releases, reduced spending on film and television projects and significant job losses. More than 1,000 writers, performers and directors signed a letter in April opposing the merger.

Paramount CEO David Ellison has said he is committed to protecting jobs after the transaction. In sworn declarations filed last month in a separate lawsuit brought by streaming subscribers, Paramount executives said the combined company planned to release at least 30 movies in theaters each year.

The executives also said new films would remain exclusively in theaters for at least 45 days before becoming available on streaming platforms.

Paramount additionally floated potential investments in California while attempting to avoid a state challenge. One proposal involved creating a $50 million training fund for unionized workers whose jobs could be disrupted by emerging technologies, including artificial intelligence, according to people familiar with the discussions.

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Bonta has publicly indicated that he favors “structural remedies” to address his competition concerns, a term that generally refers to requiring a company to sell or spin off part of its business rather than relying solely on promises about its future conduct.

Warner Bros. Discovery shareholders approved the transaction in April. Ellison said during a recent earnings call that the deal remained on schedule to close by September.

Under the agreement, Paramount would owe Warner Bros. Discovery shareholders roughly $650 million in cash for every quarter the transaction remains unfinished beginning in October.

Ellison first turned his attention to WBD last September. Within weeks of the Paramount-Skydance merger closing, the newly combined company made its initial approach, triggering multiple bids and eventually prompting a formal sale process.

David Ellison, a producer whose credits include “Top Gun: Maverick,” acquired Paramount last year with financial backing from his father, Oracle co-founder Larry Ellison. He later mounted a campaign to outbid Netflix for Warner Bros. Discovery and reached an agreement to buy the company in February.

Warner Bros. Discovery had initially agreed to sell its film studio and streaming businesses to Netflix. Paramount later disrupted that agreement by launching a hostile takeover effort and revising its offer.

Netflix ultimately abandoned its deal, leaving Paramount with an agreement to purchase all of Warner Bros. Discovery for $31 per share.

Lawmakers in the United States and Europe subsequently scrutinized the transaction, including the foreign financing involved in Paramount’s bid.

The acquisition has also renewed attention on the Ellison family’s relationship with Trump. Larry Ellison is a friend of the president, and David Ellison attended a CBS News dinner in Washington in April where he sat with Trump and Paramount Chief Legal Officer Makan Delrahim.

Acting Attorney General Todd Blanche was also present at the event, which was held while the Justice Department was still reviewing the merger.

Paramount has expanded its legal team in preparation for a possible court battle. Its hires include Jeffrey Kessler, the Winston Taylor attorney who represented the states in their successful Live Nation case, and Paul Clement of Clement and Murphy, who is known for arguing cases before the Supreme Court.

streaming

Scream, Stream, Repeat: The Cult of Shudder and the Horror Renaissance

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In a sea of streaming services that all seem to look the same — massive libraries, algorithm-driven “you may also like” carousels, and endless “content drops,” one platform is quietly carving out its own lane. Shudder is a curated gateway into a world of horror, suspense, and the beautifully strange. If you’ve ever thought that streaming has become bland or that the thrill of discovery is gone, meet the underdog doing things differently.

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netflix

Netflix to Overhaul User Experience With TikTok-Style Feed and AI Search

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Netflix announced Tuesday that it will soon test a new, vertically-scrolling feed that is specifically catered to the watching patterns of its users, embracing the trend made popular by social media platforms like TikTok. According to the streaming giant, customers will be able to access this feature alongside a revamped new home page in the coming weeks or months, depending on the viewer’s location.

The new feature will utilize short-form video clips from Netflix’s extensive catalog of movies and shows, personalized based on viewing history. Users can interact with these snippets by swiping through them to watch, save favorites, or share them directly with friends, mirroring the intuitive user experience that has made apps like TikTok immensely popular.

Netflix Chief Product Officer Eunice Kim explained the reasoning behind the platform’s new direction during a virtual event.

“We know that swiping through a vertical feed on social media apps is an easy way to browse video content, and we also know that our members love to browse our clips and trailers to find their next obsession, so in the coming weeks, we’ll be testing a vertical feed filled with clips of Netflix shows and movies to make discovery easy and fun.”

This test won’t be universally available immediately. Netflix clarified to Fast Company that the trial phase will initially reach only select mobile users. Those chosen will encounter a customized stream labeled as “top picks for you.”

Netflix previously experimented with vertical video in 2021 via two niche apps: Fast Laughs, which showcased comedy segments, and Kids Clips, designed for younger audiences.

The current initiative, however, broadens this strategy to encompass Netflix’s entire library, significantly enhancing content discovery. “This is not the first change we’ve made to our home page,” said Kim in a briefing with reporters.

“We’ve been constantly improving it over the last 12 years, mostly behind the scenes, but now, thanks to a combination of new technology and the expansion of our entertainment offerings, we think it’s time to take a giant leap forward.”

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Steve Johnson, Netflix’s head of design, previously expressed concerns regarding two key issues: content discovery and competition from mobile-focused, short-form video platforms that capture substantial viewing hours. By adopting a familiar vertical swipe experience, Netflix aims to enhance content visibility and retain users within its ecosystem longer.

The broader move reflects a significant industry shift, with vertical video formats originally popularized by TikTok now permeating various apps. Social media platforms such as Instagram and YouTube have adapted short-form interfaces, while streaming services like Tubi have launched similar discovery tools. Even Uber Eats has launched a new short-form video feed aimed at highlighting dishes from leading merchants.

Netflix’s strategy cleverly leverages viewer habits and the viral potential of bite-sized, shareable clips. By curating and controlling snippets from its own content, Netflix can ensure quality representation across platforms, simultaneously fostering organic, user-generated marketing.

If Netflix’s pilot proves successful, other streaming platforms may follow suit, exploring ways to adapt their content libraries to this increasingly influential viewing format.

The vertical feed experiment is just part of several new design features Netflix revealed, which include a revamped “My Netflix” section where users can manage their personalized lists, receive reminders for upcoming episode releases, and access their continue-watching lists.

Additionally, the streaming giant’s homepage is being updated to quickly display highlights like “New Episode,” “Oscar Winner,” or “Recently Added,” each marked by recognizable emoji icons.

“Our current TV experience was built for streaming shows and movies. This one is designed to give us a more flexible canvas now and in the future. We are always going to keep sight of what we think is the best experience for our members, particularly driving discovery and engagement with all of the movies, shows, live events and games that they love. And we believe that the improvements to the member experience will ultimately drive lots of great outcomes for us as well.”

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The company is also adapting its recommendation engine to be “more responsive to your moods and interests in the moment.”

Elizabeth Stone, Netflix’s chief technology officer, announced the platform’s collaboration with OpenAI to develop a generative AI search tool. This innovative feature will enable users to request tailored recommendations from Netflix using conversational language.

“This company has always had a unique ability to marry incredible technology with incredible entertainment. That’s our superpower,” Stone stated. “Everything starts with great shows and movies that people love. But if you think about all of the areas where Netflix has a big advantage, our reach, our recommendations, our fandom, technology enables all those things. That technology includes AI.”

“We want you to be able to discover shows in movies using natural conversational phrases, like, ‘I want something funny and upbeat,’ or ‘I want something scary, but not too scary, and also maybe a little bit funny, but not like, ha ha funny.’ Believe it or not, that search phrase will actually yield results in the new experience.”

Netflix also indicated interest in integrating video podcasts into its offerings.

The announcement of these upcoming features arrives three weeks after Netflix disclosed record profits in its most recent quarterly report, alleviating concerns among investors amid the economic turmoil triggered by President Trump’s tariffs.

It also comes just over a week before the company’s May 14 upfront, when it will present its lineup of content and products to potential advertisers. Even while Kim pointed out that “This was not timed to influence the upfronts,” the redesign and Netflix’s recent success are sure to generate interest despite advertisers seeming hesitant in the face of economic challenges.

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Netflix Added Millions Of Subscribers In Three Months, Projected To Double Profits

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Netflix is projected to double its profits this quarter after adding 5 million new subscribers throughout the summer. The world’s largest streaming service stated that they “delivered” on their initial plans to increase business by implementing stricter password sharing policies, adding advertisements, and investing in live television. 

The Guardian reported that new shows like ‘The Perfect Couple’ and new seasons of hits like ‘Emily in Paris’ are what specifically garnered an increase in viewership last quarter. Looking forward, the platform is hoping the newest season of ‘Squid Game,’ one of Netflix’s most popular shows of all time, will ideally bring in even more viewers by the end of the year. 

In the three months preceding September 30th, Netflix gained about 5.1 million new paying subscribers, bringing their total users to a record 282.7 million. 

Revenue for Netflix rose to $9.83 billion (15%) and net income increased to $2.36 billion (41%). 

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When compared to the rest of this year, however, subscription growth has slowed down significantly. In previous quarters this year Netflix gained 9.3 million and 8.1 million subscribers.

The company is projecting a net income of $1.85 billion during the current quarter. This is an increase of $938 million when compared to this quarter last year. 

“We’ve delivered on our plan to reaccelerate our business. As we look ahead to 2025, we’re focused on improving every aspect of our service and continuing to deliver healthy revenue and profit growth,” Netflix said in a letter to shareholders. 

In 2020 during the early months of the pandemic, Netflix experienced a rise in subscribers that lasted until 2022, when people started re-entering the world and watching television less. 

More recently, Netflix has invested in live broadcasting programs. They reached a decade-long deal with World Wrestling Entertainment (WWE) and also acquired the rights for two NFL games taking place on Christmas Day. 

Residents Of The Bronx Claim Their ‘Childhood’s Are Being Erased’ With Only One Movie Theater Left In The Borough

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Movie lovers throughout the Bronx are disappointed with the fact that the borough now only has one remaining movie theater. Many residents are claiming that they’re sad to see a fun childhood staple being taken away from not only them, but the younger generation to experience.

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Scientists Utilizing Artificial Intelligence To Find New Hit Songs And Musicians

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According to new research from scientists in California, a robot utilizing artificial intelligence (AI) could be the next step in identifying hit pop songs and artists in the music industry. The scientists said that by utilizing the technology, they’ve been able to identify hit songs with 97% accuracy.  

“By applying machine learning to neurophysiologic data, we could almost perfectly identify hit songs. That the neural activity of 33 people can predict if millions of others listened to new songs is quite amazing. Nothing close to this accuracy has ever been shown before,” says Paul Zak, a professor at Claremont Graduate University and senior author, in a media release. 

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The AI itself uses a neural network, which is apparently so straightforward that it can also be utilized for streaming service efficiency, TV shows, and movies in general. 

The music industry today is dominated by streaming services. With billions of songs to choose from, it can become challenging for popular apps such as Spotify, Apple Music, Tidal, etc. to choose which ones their users will listen to, especially among newer artists. 

Professor Zak claims that his colleagues and himself believe that their method is twice as effective as previous models which only showed a 50% success rate. 

In the study itself, participants listened to a set of 24 songs while wearing a skull-cap brain scanner. Throughout the process, they were asked about their preferences while the scientists measured their neurophysiological responses. 

“The brain signals we’ve collected reflect activity of a brain network associated with mood and energy levels,” Zak stated.

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Based on the responses, the team of scientists were able to use their technology to predict market outcomes for certain songs, including the number of streams a song may receive. This process is referred to as “neuroforecasting,” which essentially means using the brain activity of a select group of people to predict how a larger population will react.

According to reports from Study Finds, who reported on the study, “a statistical model identified potential chart hits 69 percent of the time, but this jumped to 97 percent when machine learning was applied to the data. The team found that even by analyzing neural responses to only the first minute of songs, they achieved a success rate of 82 percent.”

“This means that streaming services can readily identify new songs that are likely to be hits for people’s playlists more efficiently, making the streaming services’ jobs easier and delighting listeners,” Zak explains.

“If in the future wearable neuroscience technologies, like the ones we used for this study, become commonplace, the right entertainment could be sent to audiences based on their neurophysiology. Instead of being offered hundreds of choices, they might be given just two or three, making it easier and faster for them to choose music that they will enjoy.

“Our key contribution is the methodology. It is likely that this approach can be used to predict hits for many other kinds of entertainment too, including movies and TV shows,” Zak stated.

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Netflix Backtracks on Password Sharing Guidelines Following Backlash

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Less than a week after Netflix announced new rules aimed at cracking down on password sharing amongst users, the streaming service is backtracking its new guidelines, claiming they were posted in error.

In preparation for its upcoming policy to limit password sharing on the service, Netflix updated its help center page to list new restrictions. Some have been retracted after Netflix received intense backlash from its user base.

The streaming giant has been testing out its new policy on account sharing in Chile, Costa Rica, and Peru over the last year. Starting in March, viewers in America will also be subject to the new regulations.

Users will be required to designate a “primary location” for all profiles in their household, as per the new rules. Anyone who wishes to use the same account in a different location will be required to pay a fee.

Netflix plans to use device IDs, IP addresses and account activity to confirm a viewer’s location.

The updated help center page added a new requirement that users log in to their primary location’s Wi-Fi once every 31 days to avoid having their devices blocked. Users who are traveling would need to use temporary codes, which would expire after seven days.

“A Netflix account is for people who live together in a single household. People who do not live in your household will need to use their own account to watch Netflix.”

Many subscribers threatened to cancel upon hearing about the new updates. Some took to social media to share their outrage. One Twitter user tweeted questioning how this would apply to students.

“This new @Netflix anti-password sharing rule is so stupid. What about students? What about people who travel? I literally pay for one and won’t be able you use my own account after 30 days of leaving home?? Make it make sense.”

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Netflix claimed that the new updates were posted in error. They also added that no official announcements have been made outside of the countries where the tests are currently being conducted.

“For a brief time last Tuesday, a help center article containing information that is only applicable to Chile, Costa Rica, and Peru went live in other countries. We have since updated it.”

The investment firm Jeffries recently surveyed 380 Netflix password borrowers and found that 62% of them said they would no longer use the service after the new regulations rather than sign up for a new account or pay a fee.

Only 10% of respondents said they would sign up for a new account, suggesting that password-sharing users may be hesitant to switch to paid plans.

Over a third (35%) of respondents said they could just as easily replace Netflix with another service and another 31% said they do not find the content compelling enough to pay to consume.

When polled about which competitor’s platform they would use in its place, the top answers were Amazon Prime Video (42%), Hulu (35%), and Disney+ (26%).

Jadon Helfstein, head of internet research at Oppenheimer, told Yahoo Finance Live in an interview on Monday that he believes this will still be a net positive for the company.

“The bottom line is there’s a massive amount of password sharing, particularly among affluent people…We do think a good chunk of [Netflix] subscribers will probably pay more to keep certain members of their household or, let’s say, their children who no longer live with them, on their plan.”

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He added that the company would not be doing this if they thought “they would end up in a worse revenue situation.”

“The reality is people have taken advantage of it. Sharing your Netflix account with 20 other people is probably not what the company had in mind, [but] if people are reasonable and share this with five, six people in their family? I think it’s going to work out.”

The updated help center page now lists, “If you are traveling or live between different homes, we want you to be able to enjoy Netflix anywhere, anytime.”

“If you are the primary account owner (or live with them), you shouldn’t need to verify your device to watch Netflix. If you are away from the Netflix household for an extended period of time, you may be occasionally asked to verify your device. We ask you to verify to make sure that the device using the account is authorized to do so.”

To verify a viewing device, Netflix will send a link to the primary account owner’s email address or phone number with a 4-digit verification code. The code will then need to be entered on the device that requested it within 15 minutes. Once authorized, the device can be used to watch Netflix, but device verification may be required periodically.

According to a Netflix shareholder letter from last month, more than 100 million households share passwords, with 30 million residing in the U.S. and Canada.

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Sorry, Streamers: Disney+ Subscription Cost To Rise 38% In December

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For many, multiple streaming subscriptions have become the norm – and unfortunately for you and your wallet, that might soon become challenging.

Disney has announced it will be raising the monthly ad-free subscription price of Disney+ to $10.99, a 38% increase, on Dec. 8th. To keep the same price, users will have to opt into an ad-based tier, which will launch on the same day.

In an analyst conference call, CFO Christine McCarthy voiced her confidence the increases won’t be a dealbreaker for subscribers. “We expect the ad tier to be popular and we expect some people to want to stay with ad-free,” she said.

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Disney also noted Hulu will see its price raised by $2 to $14.99 on Oct. 10th, while the ad-based tier will see a $1 increase, from $6.99 to $7.99. The entertainment giant offers a bundle of ad-free Disney+, Hulu, and ESPN+ for $13.99 a month, which will also raise $1 to $14.99. Like the other increases, you can opt to keep the price the same, but all subscriptions will come with ads.

The company had previously upped Disney+’s ad-free tier from $6.99 to $7.99 back in 2021 after bursting out onto the streaming screen in November 2019, passing the number of expected subscribers within its first year.

That torrent pace — fueled by shows like “The Mandalorian” — continues to see ups, with Disney+ scoring over 14.4 million more subscribers than expected this past quarter, bringing it to 152 million total (a 31% year-over-year change).

The long-term forecast isn’t as pleasant. Disney now expects the service to reach around 215 million to a maximum of 245 million subscribers by the end of fiscal 2024, a lowered estimate that was originally pegged around 230 million to 260 million two years ago.

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Disney and CEO Bob Chapek’s reasoning for the increase is that it’s a necessary evil to match their increased content, which includes “Star Wars” and Marvel. “We believe, because of that increase in investment over the past two-and-a-half years relative to a very good price point, that we have plenty of room on price value,” Chapek said at an earnings call Wednesday.

Disney+ is also adding further content thanks to the acquisition of Fox studio, which will see R-rated movies like “Logan” and “Deadpool” hit the screens. It’s certainly a change of pace for both the service and company, both of which emphasize their family-friendly brand.

Chapek previously admitted it was a surprise to see how many adult-only households have a Disney+ subscription.

“We knew that we had interest in those general entertainment offerings, but didn’t really realize how important they could be towards our overall proposition, if you will.”

However, the price tick is also Disney attempting to compensate for the financial losses that continue to pile up. Direct-to-consumer operating income losses for the third quarter soared to $1.1 billion, up from $293 million a year ago.

Despite the subpar revenues and hits, Disney now ranks over main rival Netflix in terms of total subscribers across all their platforms by 400,000 with 221.1 million. Subscription tiers also remain lower than Netflix’s, which cost $9.99 for ad-supported streaming and $15.49 for HD, ad-free streaming.

CDs Receive Wave Of Support From Music Lovers As Sales Decline

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Many major retailers have ceased selling CD’s as a physical format for albums. Tesco recently became one of the larger retailers to announce they would be clearing the shelves of all CDs, sparking a major wave of support online from music lovers who appreciate the versatility that compact discs offer.

In 2007, the CD market was at its peak, with more than 2 billion physical copies of albums being sold globally. The digital music streaming platform, Spotify, was then launched in 2008, revolutionizing the way we consume music. CD sales began to immediately decline with the launch of the platform.

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Last year, however, CD sales saw an unexpected rise in sales thanks to Adele’s ‘30’, ABBA’s ‘Voyage’, and Ed Sheerans ‘=’.

Rob Sheffield also published a love letter to CDs in Rolling Stone last month: “Compact discs were never about romance – they were about function. They just worked. They were less glamorous than vinyl, less cool, less tactile, less sexy, less magical. They didn’t have the aura that we fans crave.

“You didn’t necessarily get sentimental over your CDs, the way you fetishized your scratchy old vinyl, hearing your life story etched into the nicks and crackles …. But CDs work. They just do. You pop in the disc, press play, music booms out. They delivered the grooves so efficiently, they became the most popular format ever.”

“Things like CD box sets, bootlegs, mixes from friends old and new, young bands whose albums I buy from the merch table at live shows and lamented the ephemeral nature of streaming culture.

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A recent article in Wired magazine also praised the “CD format, and its ridiculous affordability. Streaming was for the masses, vinyl was for hipsters, said the author, but his experiment in CD listening had brought unexpected joys.”

Some music fans just prefer the tangible aspect of having their favorite artists work in a compact physical form. Adele’s album was able to help aid CD sales after she gave an interview where she discussed how albums “tell a story, and those stories should be listened to as we intended,” meaning in order of the tracklist.

“We may be seeing the end of CDs as a mass-market product, but we could also be seeing the beginning of the repositioning of the CD as a more fetishistic item,” Bassett said.

“It’s unlikely to match the vinyl revival of recent years. There is not the same romance, the magic of dropping a needle on to vinyl. The plastic cases cracked easily. I remember listening to Nirvana’s Nevermind on the school bus and every time that the bus went over a bump, your CD would skip,” he added.

Sean Jackson of Reckless Records in Soho said “some customers insisted that the quality of analogue sound was superior to digital. But unless you’re really concentrating, you probably wouldn’t notice the difference. There’s a market for everything – vinyl, CDs, cassette tapes. Formats go in and out of fashion, but music doesn’t.”

Building Amazon

Amazon Cloud Network Outage Sparks Outrage Amongst Customers

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Amazon’s web services experienced a major outage — as well as other impairments — for over several hours Tuesday, leading to rippling effects in areas like streaming services, payment apps, and shipping. The outage primarily affected services in the eastern U.S., and sent the daily lives of millions spiraling.

Amazon’s network provides remote computing services to many companies, universities, and websites, the reason why so many frequently-used platforms and services were disrupted by Amazon’s technological issues.

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Among the Amazon products affected include Amazon Music, Kindle ebooks, voice assistant Alexa, and home security Ring. Bloomberg reported that many Ring users were frustrated due to having to redownload or reboot the Ring app before finding out about the shortage. Some users weren’t even able to get into their homes due to the app inaccessibility.

Video streaming such as Disney+ and Netflix experienced outages or slow speeds, as did other services like Robinhood, Ticketmaster, PUGB, and Slack. Delta and Southwest Airlines also saw problems with customers trying to book or change tickets, with Southwest switching over to West Coast servers.

Amazon sellers were unable to access Seller Central, while Amazon’s bread and butter, their delivery services, took heavy hits. Warehouse workers and delivery drivers were unable to access Amazon’s Flex app, preventing them from scanning packages and accessing delivery assignments and routes. NBC News noted the amount of warehouses and delivery stations that were impacted aren’t known.

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As the issues continued, many workers simply waited in break rooms or ended up being sent home for the day. The outage couldn’t have come at a worse time for Amazon, considering it’s in the middle of the holiday season, and the pressure is on for packages to arrive in a timely fashion. The potential backlogs created from this widespread incident could become more apparent in the coming weeks.

This incident is also giving many a new perspective on just how dependent their lives have become on the internet, as well as one company in particular. Speaking to the Associated Press, technologist and public data access activist Carl Malamud explained that the internet’s original goal of not being dependent on a singular factor has been undone by giants like Amazon.

“When we put everything in one place, be it Amazon’s cloud or Facebook’s monolith, we’re violating that fundamental principle. We saw that when Facebook became the instrument of a massive disinformation campaign, we just saw that today with the Amazon failure.”

Following multiple hours of the outage, Amazon reported they had mitigated the underlying issue that caused devices to be impaired, but were still working on a full recovery for additional services. Amazon has yet to comment further on the outage beyond giving repair updates on their status page.

Amazon Web Services is a major profit maker for the company. In the third quarter of 2021, AWS totaled $16.11 billion, up from 39% a year ago. It trumped the experts predictions of around $15.48 billion. AWS — which accounts for about 15% of Amazon’s total revenue — also leads the cloud infrastructure market with 41% of shares in 2020.