The lawsuit, filed in a state court in Collin County, Texas, accuses Netflix of misleading users about its data collection practices while allegedly sharing viewing habits and preferences with advertising and data brokerage firms.

According to the complaint, Netflix falsely assured consumers that it did not collect or share user data, while internally monetising audience behaviour for commercial gain.

Texas also alleged that the company used “dark patterns,” including autoplay features, to keep users engaged for longer periods.

“Netflix’s endgame is simple and lucrative: get children and families glued to the screen, harvest their data while they are stuck there, and then monetize the data for a handsome profit,” the complaint stated.

The lawsuit referenced comments made in 2020 by Netflix co-founder Reed Hastings, who reportedly said the company did not collect user data in the same way as major advertising-driven technology firms.

Netflix denied the allegations and said it intends to challenge the claims in court.

“Netflix takes our members’ privacy seriously and complies with privacy and data protection laws everywhere we operate,” a company spokesperson said.

Texas is seeking civil penalties of up to $10,000 per violation and has asked the court to order Netflix to delete any data allegedly collected unlawfully and halt targeted advertising practices without user consent.

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Trump made the demand in a post on his social media platform, Truth Social, where he sharply criticized Rice and questioned her role on the streaming giant’s board.

“Netflix should fire racist, Trump Deranged Susan Rice, IMMEDIATELY, or pay the consequences,” Trump wrote, adding that she had “no talent or skills” and describing her as a “political hack.”

The comments came after Rice appeared on the “Stay Tuned with Preet” podcast hosted by former U.S. attorney Preet Bharara. During the interview, Rice suggested that corporations aligning themselves with Trump could face repercussions if Democrats return to power.

“If these corporations think that the Democrats, when they come back in power, are going to play by the old rules… I think they’ve got another thing coming,” Rice said, arguing that companies should not expect to be forgiven for decisions made under political pressure.

Rice, who previously served as U.S. ambassador to the United Nations and held senior advisory roles under Presidents Barack Obama and Joe Biden, has been a member of Netflix’s board since 2018.

Trump’s post also referenced criticism from conservative activist Laura Loomer and raised concerns about Netflix’s reported acquisition of Warner Bros., a deal that would require federal regulatory approval. While Trump did not specify what consequences the company might face, the streaming giant’s expansion plans could draw scrutiny from regulators.

Netflix has not publicly responded to Trump’s remarks.

The latest exchange underscores the growing intersection of politics and corporate governance, as major technology and media companies navigate regulatory oversight and intensifying partisan tensions.

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The updated offer, disclosed in a regulatory filing on Tuesday, has received unanimous backing from the Warner Bros Discovery board. Netflix said the all-cash structure would allow for a faster shareholder vote and provide greater financial certainty to investors.

Both Netflix and Paramount Skydance have been competing to acquire Warner Bros Discovery for its film and television studios, extensive content library and major franchises including Game of Thrones, Harry Potter and DC Comics properties such as Batman and Superman. Paramount has argued that its bid is superior and has stepped up efforts to persuade shareholders, but Warner Bros Discovery has continued to favour Netflix’s proposal.

Netflix co-CEO Ted Sarandos said the revised deal would enable an expedited timeline to a shareholder vote, which is expected to take place by April. Shares of Netflix rose slightly in early trading, while Paramount and Warner Bros Discovery shares dipped.

The new offer replaces Netflix’s earlier cash-and-stock proposal, which had been partly undermined by a decline in Netflix’s share price since the deal was announced in December. Warner Bros Discovery said the fixed cash consideration offers certainty of value and immediate liquidity for shareholders.

The board also reiterated its position that the Netflix deal remains superior to Paramount Skydance’s $30-per-share all-cash bid, partly because Warner Bros Discovery investors would retain a stake in a planned spin-off, Discovery Global, which will house cable television assets such as CNN, TNT Sports and the Discovery+ streaming service.

Paramount’s tender offer is set to expire on January 21, and analysts say the bidding contest may not yet be over, though pressure is mounting on Paramount to improve its proposal. Any deal is also expected to face regulatory scrutiny amid broader concerns about consolidation in the media industry.

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Warner Bros Discovery said its board would review the new offer but maintained its recommendation in favor of Netflix’s bid, telling shareholders to “take no action at this time.” Paramount’s proposal includes $30 per share in cash, backed by financing from Jared Kushner’s Affinity Partners, several Middle Eastern sovereign wealth funds, and the Ellison family. Larry Ellison — the world’s second-richest person and father of Paramount CEO David Ellison — has been personally involved and reportedly contacted U.S. President Donald Trump to raise concerns over Netflix’s market dominance.

Paramount argues its bid is superior, offering $18 billion more in cash than Netflix and a faster route to regulatory approval. The company says a combined Paramount–Warner Bros entity would strengthen Hollywood, benefit theaters, and boost competition for consumers. However, analysts note the takeover would likely face its own antitrust scrutiny as it would merge two major television operators and result in a studio larger than Disney. U.S. lawmakers, including Senator Elizabeth Warren, have already warned that such consolidation could pose national security and monopoly risks.

The high-stakes contest has become increasingly political. Trump said he intends to “do what’s right” regarding regulatory approval and expressed concerns about market concentration but noted that neither company is “a friend” of his. If Warner Bros accepts Paramount’s proposal, it must pay Netflix a $2.8 billion breakup fee; Netflix would owe $5.8 billion if its deal collapses.

Shares of Paramount rose 7.3% on Monday following news of the hostile bid, while Warner Bros Discovery climbed 5.3%. Netflix shares fell about 4%. Analysts expect the takeover battle to continue, with Paramount preparing to appeal to shareholders, regulators, and lawmakers after accusing Warner Bros of favoring Netflix throughout the process.

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Speaking to reporters as he arrived at the Kennedy Center for its annual awards ceremony, Trump said the size and influence of a combined Netflix–Warner Bros entity would require close scrutiny. “I’ll be involved in that decision,” he said.

Netflix announced on Friday that it had reached an agreement to acquire Warner Bros Discovery’s television, film studio and streaming businesses. The deal, one of the largest media acquisitions in recent years, would give the streaming giant control over a historic Hollywood studio and a vast catalogue of content.

Trump did not explicitly state whether he supports or opposes the merger, but he referenced the potential impact on competition. “That’s going to be for some economists to tell… But it is a big market share. There’s no question it could be a problem,” he said.

Regulators are expected to review the deal in the coming months.

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The deal, reached after a competitive bidding process against Paramount and Comcast, would hand Netflix ownership of major franchises such as Game of Thrones, Harry Potter, and DC Comics’ Batman and Superman. Netflix co-CEO Ted Sarandos said the acquisition offers a “rare opportunity” to expand the company’s storytelling capabilities and global content library.

The merger is expected to face significant antitrust scrutiny in both the U.S. and Europe, given the combined companies’ large market share and overlapping streaming operations. Critics, including industry groups and former media executives, have raised concerns about reduced competition and the potential impact on theatrical releases and creative workers. Netflix said it intends to maintain Warner Bros’ presence in cinemas and increase long-term investment in content production.

The acquisition is expected to close after Warner Bros Discovery completes a planned spinoff of its global networks division in 2026. Netflix projects $2–3 billion in annual cost savings within three years of closing and says the deal will expand opportunities across streaming, original productions and gaming, where Warner Bros has seen significant success with titles such as Hogwarts Legacy.

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An updated support page briefly stated that Netflix “no longer supports casting to most TVs and TV-streaming devices,” before being modified again to clarify that casting is limited to Chromecast (3rd gen or older), Google Nest Hub smart displays, select cast-enabled Vizio TVs and Compal TVs. Devices with their own Netflix apps and remotes now require users to navigate the service directly rather than casting from a phone.

Netflix customer service representatives told affected users that casting is no longer supported on devices that have built-in remotes. Devices without native Netflix apps, however, appear unaffected.

The company has already ended support for AirPlay on iOS and the Google TV app. According to its support page, casting or mirroring is also blocked for users on the ad-supported plan or when devices are not connected to the same Wi-Fi network. Netflix has not offered a detailed explanation for the change beyond saying it is intended to “improve the customer experience.”

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In its quarterly earnings report released on Tuesday, the streaming giant told investors it is “very well positioned to effectively leverage ongoing advances in AI,” adding that the technology could improve efficiency and expand creative possibilities in film and TV production.

“It takes a great artist to make something great,” Netflix CEO Ted Sarandos said during the earnings call. “AI can give creatives better tools to enhance their overall TV and movie experience for our members, but it doesn’t automatically make you a great storyteller if you’re not.”

Netflix has already begun experimenting with generative AI in production. Earlier this year, the company used the technology in the Argentine sci-fi series The Eternaut to simulate a collapsing building. Since then, filmmakers behind Happy Gilmore 2 reportedly used AI to de-age characters, while the producers of Billionaires’ Bunker employed it in pre-production for wardrobe and set design.

Sarandos said the company believes AI will ultimately make creative work “better, faster, and more innovative,” but emphasized that Netflix is “not chasing novelty for novelty’s sake.”

The announcement comes amid rising tensions in Hollywood over the use of AI. Many artists fear that AI tools—often trained on copyrighted works—could threaten their livelihoods. The debate intensified following OpenAI’s release of Sora 2, an AI model capable of generating hyperrealistic videos without guardrails against deepfaking actors or historical figures.

The Screen Actors Guild–American Federation of Television and Radio Artists (SAG-AFTRA) and actor Bryan Cranston have since urged OpenAI to introduce stronger protections.

When asked about Sora’s impact on Netflix, Sarandos acknowledged that AI could affect the creative ecosystem but maintained confidence in human-led storytelling. “We’re not worried about AI replacing creativity,” he said.

Netflix’s quarterly revenue rose 17% year-over-year to $11.5 billion, though the figure fell slightly below company forecasts.

The post Netflix Leans Into Generative AI, Says It Won’t Replace Storytelling appeared first on Tech Digest News.

Beware: A New Netflix Scam

TECH DIGEST- Scammers are constantly devising new tactics to deceive unsuspecting victims. The latest ploy involves a sophisticated phishing attack targeting Netflix users.

Cybercriminals are sending fraudulent text messages claiming that users’ Netflix accounts are on the verge of suspension due to failed payment processing. These messages often contain a malicious link designed to lure victims into divulging their sensitive personal information, such as login credentials and credit card details.

To protect yourself from such cyberattacks, it is crucial to exercise caution and remain vigilant. Avoid clicking on suspicious links, especially those received via unsolicited text messages. If you receive a message purporting to be from Netflix, verify its authenticity by directly logging into your account through the official Netflix website or app.

By adopting these precautionary measures, individuals can significantly reduce their risk of falling victim to phishing attacks and safeguard their online security.

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TECHDIGEST – Entertainment giant Disney said Wednesday it was laying off 7,000 employees, as CEO Bob Iger announced a reorganisation of the company he returned to lead last year.

The job cuts follow similar moves by US tech giants dialing back from a hiring spurt that began during the height of the pandemic.

“I do not make this decision lightly,” Iger said on a call to analysts after Disney posted its latest quarterly earnings.

In its 2021 annual report, the group said it employed 190,000 people worldwide, 80 percent of whom were full-time.

“We are going to take a really hard look at the costs for everything that we make, both across television and film,” Iger said.

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“Because things in a very competitive world have just simply gotten more expensive.”

The storied company founded by Walt Disney said its streaming service saw its first ever fall in subscribers last quarter as consumers cut back on spending.

Subscribers to Disney+, the streaming archrival to Netflix, fell one percent to 161.8 million customers on December 31, compared to three months earlier.

Analysts had broadly expected the decline, and the Disney share price climbed more than five percent in post-session trading.

“There are still big challenges ahead for Disney,” Insider Intelligence principal analyst Paul Verna said in a note to investors.

“Its traditional TV business is eroding, its streaming operation is not yet profitable, and it’s facing pressure from an activist investor to rein in costs and plan for a post-Iger succession.”

Source: Punchng.com

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