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Netflix won the streaming wars, and we’re all about to pay for it

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Netflix won the streaming wars, and we’re all about to pay for it

Whenever Netflix raises its prices — which seems to happen roughly as often as Ben Affleck falls in love with an A-list celebrity — the company always gives the same reason. It needs the extra money, you see, in order to keep investing in the kind of programming and product its 302 million subscribers demand. That’s how the standard monthly price of ad-free Netflix jumped from $7.99 to $17.99 over the course of the last 13 years, including a $2.50 jump just announced during the company’s recent earnings report. There’s still a $7.99 monthly plan, of course, but that one includes ads — and it’s a dollar more expensive than it was a week ago.

But let’s be real with each other. You want to know why Netflix keeps raising its prices? Because it can. Because Netflix won. The rest of the streaming industry is competing ferociously over a finite pool of money, dealing with carriage disputes because of dwindling subscriber numbers, and panicking over the future of TV. Netflix is the future of TV. 

Over the last couple of years in particular, Netflix has gone from a solid streaming service to a practically unavoidable, virtually uncancellable part of mainstream culture. It has developed a slate of hit originals — Stranger Things, Wednesday, Squid Game, The Night Agent if we’re being really generous — that give it at least something approximating HBO-style appointment TV. It has proven, through things like the Paul / Tyson fight and the Tom Brady roast, that it can manufacture cultural events more or less out of nothing. It pulled off a day of NFL games without a hitch and spent billions of dollars to get WWE’s Monday Night Raw, one of cable’s biggest ongoing hits, onto the platform. And underneath it all, it has built a massive library of reality shows, cooking competitions, and the other filler TV that makes up most of our TV viewership.

Netflix has gone from a solid streaming service to a practically unavoidable, virtually uncancellable part of mainstream culture

Now, for the price of your Netflix subscription, you get a bunch of expensive movies, high-end TV shows, sports, and low-budget reality programs all in one place. You don’t want it all, but you pay for it anyway. That, my friends, is called a cable bundle. And it’s still the best business the entertainment industry has ever devised.

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The average price of a basic cable subscription in 2006, the year before Netflix started streaming content over the internet, was between $40 and $50. People watched something like four hours of TV a day, which meant they probably watched about an hour of ads every single day. Today, services like YouTube TV and Comcast’s new sports and news bundle are $70 or more and only provide live programming. Meanwhile, Netflix subscribers watch two hours of the service every day, across all those categories, and are paying as little as a tenth of the price. Many of them see no ads at all. Think of the savings!

Netflix sure sees it that way. Greg Peters, the company’s co-CEO, said on this week’s earnings call that he’s optimistic about Netflix’s “long-term monetization opportunity.” “We earn, right now, only 6 percent of the revenue opportunity in the countries and segments that we currently serve,” he said. “And as long as we continue to deliver on improving the variety, the quality of our TV and film slate, we gradually expand the offering with newer content types, we believe we’ll be able to increase that share progressively every year.”

Translation: Netflix is coming for your entire entertainment diet. And your entire entertainment budget.

As it looks at price increases, Peters also said, Netflix considers signals like engagement, retention, and acquisition. All that amounts to one simple question: do you keep using Netflix when the price goes up? The answer, so far, has almost always been yes. And so the prices keep going up. It’s really just that simple. It’s clear to Netflix that it could charge more — maybe a lot more — and hardly anybody would leave. So of course it’s going to push the limits.

The other way to understand the specifics of the pricing strategy is that Netflix would very much like you to have that ad-supported plan. The company has said repeatedly that it makes more money on the combination of a smaller monthly fee and advertising than it does from the larger subscription price alone. A large percentage of new subscribers are choosing ads — about 55 percent in the latest quarter — and Netflix is beginning to test exactly how much its existing subscribers will pay to keep their Netflix ad-free. It’s no accident that the ad-free price just jumped two and a half times as much as the base price did. And remember: even if we all switch to the ads plans, the prices might still go up. Cable TV is expensive and filled with ads, after all, and Netflix sure likes that business model.

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Netflix would very much like you to have that ad-supported plan

Netflix continues to signal that its ambitions are only growing, too. Ted Sarandos, the company’s other co-CEO, indicated on this week’s earnings call that the company is more open to live sports than ever, after the success of the Christmas NFL games and the Paul / Tyson fight. The company is increasingly getting into video games, too, which accounts for another huge chunk of many people’s entertainment budget. Netflix is even starting to borrow tactics from YouTube and TikTok, bringing creators like Ms. Rachel onto the platform.

Reed Hastings, Netflix’s co-founder and former CEO, famously said that Netflix’s main competitor is sleep. Sleep’s still a pretty powerful market force, to be fair. And YouTube continues to be an even more dominant force in people’s video-viewing experience. But Netflix has ascended above practically everybody else — even its ostensible competitors are now licensing their shows to Netflix because that’s where the viewers are, and where the culture is.

The streaming wars have been messy, and they’re certainly not over, but Netflix already won. The only question left is exactly how rich the spoils of victory will be. And you better believe Netflix is going to find out.

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Xiaomi 17 is a small(ish) phone with a big(ish) battery

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Xiaomi 17 is a small(ish) phone with a big(ish) battery

Xiaomi has just given a global launch to two of its latest flagship phones, the Xiaomi 17 and 17 Ultra, along with a Leica-branded Leitzphone edition of the Ultra. There’s no sign, however, of the 17 Pro, which launched in China with an additional display mounted next to the rear cameras.

The 17 and 17 Ultra will apparently be available soon in the UK, Europe, and select other markets. The 17 — pitched as a rival to the likes of the iPhone 17 and Samsung Galaxy S26 — will cost £899 / €999 (about $1,200), while the larger and more capable Ultra starts from £1,299 / €1,499 ($1,750). The limited-edition Leitzphone will be substantially more expensive at £1,699 / €1,999 ($2,300), though it includes 16GB of RAM and 1TB of storage, along with a few extra accessories.

I like the simple, sleek aesthetic of the phone.
Photo of Xiaomi 17 homescreen on a wooden table outdoors

The 6.3-inch display isn’t tiny, but it does make the phone small by modern standards.
Closeup on Xiaomi 17 rear camera

All three of the phone’s rear cameras are 50-megapixel.

The 17 is an extremely capable small-ish flagship, with a 6.3-inch OLED display, Qualcomm Snapdragon 8 Elite Gen 5, and large 6,330mAh silicon-carbon battery (though sadly smaller than the 7,000mAh version launched in China). I won’t be writing a full review of the 17, but did spend a week using it as my main phone, and found that the battery cruised past the full-day mark, though wasn’t quite enough for two full days of my typical usage. That’s far better battery life than you’d find in similarly sized phones from Apple, Samsung, or Google.

The cameras impress too, with 50-megapixel sensors behind each of the four lenses, selfie included. Pound for pound, you won’t find many better camera systems in any phone this size.

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1/10

I’ve been largely impressed by the Xiaomi 17’s cameras.

The Ultra, unsurprisingly, takes things to another level. It’s much larger, with a 6.9-inch display, and weighs a hefty 218g. Despite that, the 6,000mAh is actually smaller, though I found it delivered pretty similar longevity.

Photo of Xiaomi 17 and 17 Ultra on a table, closeup on the cameras

The 17 Ultra is larger in just about every respect, but strangely has a smaller battery.

The enormous camera is, as ever for Xiaomi’s Ultra phones, the highlight. There are 50-megapixel sensors for each of the main, ultrawide, and selfie cameras, with a large 1-inch-type sensor behind the primary lens. The periscope telephoto is even more impressive: 200-megapixel resolution, a large 1/1.4-inch sensor, and continuous optical zoom from 3.2x to 4.3x, the equivalent of 75-100mm. Xiaomi isn’t the first to pull off a true zoom phone — Sony’s Xperia 1 IV got there first in 2022 — but the telephoto camera here is far more capable than that phone’s, with natural bokeh and impressive performance even in low light.

Photo of Xiaomi 17 Ultra Leitzphone outdoors

This is the Leica-branded Leitzphone version of the 17 Ultra.

The camera capabilities are supported by Xiaomi’s ongoing photography partner Leica, but it’s the pair’s Leitzphone that really emphasizes that. Slightly redesigned from the 17 Ultra Leica Edition that was released in China last December, this includes Leica branding across the hardware and software, a range of Leica filters and shooting styles, and a rotatable rear camera ring that can be used to control the zoom. It’s the first Leica Leitzphone produced by Xiaomi — after a trio of Japan-only Sharp models — and comes with additional branded accessories, including a case with a lens cap and a microfiber cleaning cloth.

Xiaomi has plenty of other announcements alongside the 17 series phones at MWC this year, including a super-slim magnetic power bank, the Pad 8 and Pad 8 Pro tablets, and a smart tag that supports both Google and Apple’s tech-tracking networks.

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Photography by Dominic Preston / The Verge

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Google dismantles 9M-device Android hijack network

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Google dismantles 9M-device Android hijack network

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Free apps are supposed to cost you nothing but storage space. But in this case, they may have cost millions of people control over their own internet connections.

Google says it has disrupted what it believes was the world’s largest residential proxy network, one that secretly hijacked around 9 million Android devices, along with computers and smart home gadgets. Most people had no idea their devices were being used since the apps worked normally, and nothing looked broken.

But behind the scenes, those devices were quietly routing traffic for strangers, including cybercriminals.

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Google says it disrupted a massive residential proxy network that secretly hijacked about 9 million Android and smart devices. (AaronP/Bauer-Griffin/GC Images)

How your device became part of a proxy network

According to Google’s Threat Intelligence Group, the network was tied to a company known as IPIDEA. Instead of spreading through obvious malware, it relied on hidden software development kits, or SDKs, that were embedded inside more than 600 apps. These apps ranged from simple utilities to VPN tools and other free downloads. When you installed one, the app performed its advertised function. But it also enrolled your device into a residential proxy network.

That means your phone, computer or smart device could be used as a relay point for someone else’s internet traffic. That traffic might include scraping websites, launching automated login attempts or masking the identity of someone conducting shady online activity. From the outside, it looked like that activity came from your home IP address. You wouldn’t see it happening, and in many cases, you wouldn’t notice any major performance issues.

Google says in a single seven-day period earlier this year, more than 550 separate threat groups were observed using IP addresses linked to this infrastructure. That includes cybercrime operations and state-linked actors. Residential proxy networks are attractive because they make malicious traffic look like normal consumer activity. Instead of coming from a suspicious data center, it appears to come from someone’s living room.

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What Google did to shut it down

Google says it took legal action in a U.S. federal court to seize domains used to control the infected devices and route proxy traffic. It also worked with companies like Cloudflare and other security firms to disrupt the network’s command-and-control systems. Google claims it also updated Play Protect, the built-in Android security system, so that certified devices would automatically detect and remove apps known to include the malicious SDKs.

However, Google also warned that many of these apps were distributed outside the official Play Store. That matters because Play Protect can only scan and block threats tied to apps installed through Google Play. Third-party app stores, unofficial downloads and uncertified Android devices carry far greater risk.

IPIDEA has claimed its service was meant for legitimate business use, such as web research and data collection. But Google’s research suggests the network was heavily abused by criminals. Even if some users knowingly installed bandwidth-sharing apps in exchange for rewards, many did not receive clear disclosure about how their devices were being used.

Google’s investigation also found significant overlap between different proxy brands and SDK names. What looked like separate services were often tied to the same infrastructure. That makes it harder for consumers to know which apps are safe and which are quietly monetizing their connection.

300,000 CHROME USERS HIT BY FAKE AI EXTENSIONS
 

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Hidden software inside more than 600 apps allegedly turned phones and computers into internet relays for cybercriminals. (David Paul Morris/Bloomberg via Getty Images)

7 ways you can protect yourself from Android proxy attacks

If millions of devices can be quietly turned into internet relay points, the big question is, how do you make sure yours isn’t one of them? These steps reduce the risk that your phone, TV box or smart device gets pulled into a proxy network without you realizing it.

1) Stick to official app stores

Only download apps from the Google Play Store or other trusted app marketplaces. Some apps hide small pieces of code that can secretly use your internet connection. These are often spread through third-party app stores or direct app files called “APKs,” which are Android app files installed manually instead of through the Play Store. When you sideload apps this way, you bypass Google’s built-in security checks. Sticking to official stores helps keep those hidden threats off your device.

2) Avoid “earn money by sharing bandwidth” apps

If an app promises rewards for sharing your unused internet bandwidth, that’s a major red flag. In many cases, that is exactly how residential proxy networks recruit devices. Even if it sounds legitimate, you are effectively renting out your IP address. That can expose you to abuse, blacklisting or deeper network vulnerabilities.

3) Review app permissions carefully

Before installing any app, check what permissions it requests. A simple wallpaper app should not need full network control or background execution privileges. After installation, go into your phone’s settings and audit which apps have constant internet access, background activity rights or special device permissions.

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4) Install strong antivirus software

Today’s mobile security tools can detect suspicious app behavior, unusual internet activity and hidden background services. Strong antivirus software adds an extra layer of protection beyond what’s built into your device, especially if you’ve installed apps in the past that you’re unsure about. Get my picks for the best 2026 antivirus protection winners for your Windows, Mac, Android and iOS devices at Cyberguy.com.

5) Keep your devices updated

Android security updates patch vulnerabilities that proxy operators may exploit. If you’re using an older phone, tablet or Android TV box that no longer receives updates, it may be time to upgrade. Unpatched devices are easier targets for hidden SDK abuse and botnet enrollment.

6) Use a strong password manager

If your device ever becomes part of a proxy network or is otherwise compromised, attackers often try to pivot into your accounts next. That’s why you should never reuse passwords. A password manager generates long, unique passwords for every account and stores them securely, so one breach does not unlock your email, banking or social media. Many password managers also include breach monitoring tools that alert you if your credentials appear in leaked databases, giving you a chance to act before real damage is done. Check out the best expert-reviewed password managers of 2026 at Cyberguy.com.

7) Remove apps you don’t fully trust

Go through your installed apps and delete or uninstall anything you don’t recognize or haven’t used in months. The fewer apps running on your device, the fewer opportunities there are for hidden SDKs to operate. If you suspect your device has been compromised, consider a full reset and reinstall only essential apps from trusted sources.

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Threat groups and state-linked actors allegedly used compromised devices to mask online activity and automate attacks. (Photo Illustration by Serene Lee/SOPA Images/LightRocket via Getty Images)

Kurt’s key takeaway

Residential proxy networks operate in a gray area that sounds harmless on paper but can quickly become a shield for cybercrime. In this case, millions of everyday devices were quietly enrolled into a system that attackers used to hide their tracks. Google’s takedown is a major move, but the broader market for residential proxies is still growing. That means you need to be cautious about what you install and what permissions you grant. Free apps are rarely truly free. Sometimes, the product being sold is you and your internet connection.

Have you ever installed an app that promised rewards for sharing bandwidth, or used a free VPN without thinking twice about it? Let us know your thoughts by writing to us at Cyberguy.com.

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Defense secretary Pete Hegseth designates Anthropic a supply chain risk

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Defense secretary Pete Hegseth designates Anthropic a supply chain risk

This week, Anthropic delivered a master class in arrogance and betrayal as well as a textbook case of how not to do business with the United States Government or the Pentagon.

Our position has never wavered and will never waver: the Department of War must have full, unrestricted access to Anthropic’s models for every LAWFUL purpose in defense of the Republic.

Instead, @AnthropicAI and its CEO @DarioAmodei, have chosen duplicity. Cloaked in the sanctimonious rhetoric of “effective altruism,” they have attempted to strong-arm the United States military into submission – a cowardly act of corporate virtue-signaling that places Silicon Valley ideology above American lives.

The Terms of Service of Anthropic’s defective altruism will never outweigh the safety, the readiness, or the lives of American troops on the battlefield.

Their true objective is unmistakable: to seize veto power over the operational decisions of the United States military. That is unacceptable.

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As President Trump stated on Truth Social, the Commander-in-Chief and the American people alone will determine the destiny of our armed forces, not unelected tech executives.

Anthropic’s stance is fundamentally incompatible with American principles. Their relationship with the United States Armed Forces and the Federal Government has therefore been permanently altered.

In conjunction with the President’s directive for the Federal Government to cease all use of Anthropic’s technology, I am directing the Department of War to designate Anthropic a Supply-Chain Risk to National Security. Effective immediately, no contractor, supplier, or partner that does business with the United States military may conduct any commercial activity with Anthropic. Anthropic will continue to provide the Department of War its services for a period of no more than six months to allow for a seamless transition to a better and more patriotic service.

America’s warfighters will never be held hostage by the ideological whims of Big Tech. This decision is final.

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