Current Events in July 2018

Apple Music now has more paying subscribers per month in the United States than Spotify.

Based on confidential details shared with Digital Music News, a recent report reviewed subscriber tallies from the country’s most popular music subscription providers, including Tidal, Spotify, Apple Music, and Sirius XM, with Apple Music now taking control of the top spot.

It was reported that both Apple Music and Spotify have 20 million subscribers, with Apple Music now hitting “20 million plus.” The exact number has not been revealed to protect confidentiality; however, trial users were not used in the final numbers.

Data shows that Apple Music has been on the rise since the start of 2018, and the lead over Spotify is only expected to grow throughout the rest of the year. Back in February, the Wall Street Journal reported that Apple Music was growing at a five percent rate in the United States, whereas Spotify was growing at a two percent rate.

The report did not indicate the amount of money each subscriber pays per month, though the experts at Digital Music News believe Apple Music to be ahead of Spotify in this category as well. The site notes that Spotify offers users a three-month free trial of Spotify Premium, student discounts, and other cut-rate plans, while Apple’s discounts are much more limited.

Global growth

On a global scale, Apple Music has over 45 million subscribers, with an additional five to 10 million trail subscribers. Apple’s free trial lasts for three months, with some exceptions in certain countries. Comparatively, Spotify has over 70 million subscribers worldwide, with nearly 160 million users overall.

Though this appears to be an advantage for Spotify, data collected from the recent release of Drake’s album Scorpion suggests otherwise. During the first week of the album’s release, Apple Music scored 170 million streams of the album’s tracks. Spotify estimated 130 million streams by comparison.

These numbers raise questions as to how active Spotify’s hundreds of millions of users are on a regular basis. Additionally, Spotify heavily promoted Scorpion for weeks, and many are questioning the platform’s engagement with its users.

Recent changes to Spotify

Despite the comparisons to Apple Music, Spotify has recently updated the free version of its subscription, which hadn’t been changed since 2014.

Free users now get access to 15 customized playlists created by Spotify that can be played in any order. Subscribers in the free tier are no longer confined to shuffle mode, and they can also listen on-demand to any song they want as many times as they want.

Free users will still have advertisements, and the tier will also feature “data saver” mode, which will reduce data consumption by nearly 75 percent.

Spotify updated its free version in an effort to keep non-paying users satisfied and to better understand the needs of users.

“The free experience of Spotify is becoming a lot more like Spotify Premium,” said Babar Zafar, vice president of product development.

Remember the old adage “if it seems too good to be true, it probably is?” That’s what MoviePass’ three million users might be thinking after the company added a kicker called “summer surge pricing” to its existing subscription plan.

Couched as an “evolution of our product,” the company’s Peak Pricing addendum “goes into effect when there’s high demand for a movie or showtime,” according to an email to MoviePass’ subscribers.

“You may be asked to pay a small additional fee depending on the level of demand. You can avoid the surcharge by selecting a different showtime or movie. Over the coming weeks we’ll also be introducing Peak Pass, which will allow you to waive one peak fee per month,” the company wrote to its customers.

The long and winding road

The monthly subscription service’s path to success has been long and winding. Since launching in 2011, MoviePass has bounced through several pricing configurations ranging from plans based on market size and the number of movies a subscriber could view in a month to monthly fees ranging from $30 down to the current $9.95.

The $9.95 plan proved to be the pivot point the company was hoping for, and its membership skyrocketed from there.

“After years of studying and analysis, we found that people want to go to the movies more often, but the pricing keeps going up, and that prevents them from going more. We're making it more affordable for people," MoviePass CEO Mitch Lowe said at the time of the $9.95/month relaunch.

The fine print

The company’s frequent changes to its terms of use and changes in subscription prices have created confusion and frustration with its subscriber base. However, MoviePass is putting the responsibility of staying clued in on the consumer.

“MoviePass reserves the right, in its sole discretion, to change, modify, add or remove portions of these Terms of Use, at any time, without prior notice,” reads its latest terms of use dated July 5, 2018.

“IT IS YOUR RESPONSIBILITY TO CHECK THESE TERMS OF USE, AND THE MOVIEPASS APP PERIODICALLY FOR CHANGES. YOUR CONTINUED USE OF THE SERVICE AND THE SITE FOLLOWING THE POSTING OF CHANGES WILL MEAN THAT YOU ACCEPT AND AGREE TO THE CHANGES,” the company emphasized.

To long-term subscribers, this is more than a tempest in a teapot.  “MoviePass CEO trying to convince shareholders that surge pricing, company merchandise, changing the Terms of Service twice a month and manipulating audience scores for their own movies will somehow save the company,” posted one Twitter user.

On Facebook, another subscriber threw up her hands and simply quit: “We just cancelled!! So sick of the bait and switch!!! DONE!!!”

Is there an alternative?

Movie lovers are no longer stuck with MoviePass alone. Since the company’s rise, two new players have come in ready to give solace to MoviePass’ ex-pats.

The nation’s largest theatre chain -- AMC -- just rolled out “AMC Stubs A-List” and offers three tickets per week for the monthly price of $19.95. Members collect points from concession purchases and have access to premium formats like IMAX and 3D. The only real downside is that you are limited to AMC theatres, whereas MoviePass has deals with a variety of movie chains.

Another entry in the movie subscription game is Sinemia. Its price tier runs from $4.99 per month for 1 standard movie ticket up to $14.99 per month for 3 of any movie ticket (3D, 4D, IMAX included).

Both AMC and Sinemia offer subscribers the option to watch a movie more than one time versus MoviePass’ one-and-done restriction.

With Toys “R” Us stores now permanently closed, sources say Amazon is planning to publish a holiday toy catalog of its own. The catalog would take the place of the defunct chain’s “Big Book” toy catalog, which helped many children create their holiday wishlist.

Amazon’s print holiday toy catalog will be mailed to millions of U.S. households, as well as handed out at Whole Foods (which Amazon owns), according to a Bloomberg report.

Although online retailers like Amazon are considered to be one of the main reasons physical retailers have been forced to fold, there is still money to be made from the traditional brick-and-mortar business model.

Amazon purchased Whole Foods last year as a way of entering the traditional retail sector. Since then, it has since begun advertising its voice assistants and discount membership in stores. The e-commerce giant even reportedly considered acquiring some Toys “R” Us locations earlier this year.

Other retailers have also bolstered their toy offerings in an attempt to fill the void left by Toys “R” Us. Party City Holdco Inc., for example, plans to open 50 pop-up toy shops for the holidays. In May, Target said it would be expanding shelf space for toys this coming holiday season and holding in-store events with major brands.

A new study published in BMU Diabetes & Care found that working over 45 hours per week is linked to an increased risk of diabetes in women. However, decreasing that to a recommended 30-40 hours per week was associated with no heightened risk, the researchers say.

With diabetes on the rise, the disease cost the global economy $1.31 trillion in 2015 alone. Moreover, a global estimate predicts that 439 million adults will have diabetes by 2030 -- a 50 percent increase since 2010.

What the research shows

While many studies have been done on the links between excessive work hours and diabetes risk, many of them focus solely on men.

The researchers wanted a more complete picture with this study, so they used the health survey data and medical records of 7065 Canadian workers aged 35-74 over a 12-year period.

The participants’ weekly working hours was the major consideration, but the researchers also looked into factors like age, sex, marital status, parenthood, ethnicity, place of birth and residence, any long term health conditions, and body mass index (BMI). Workplace factors -- whether the job was active or sedentary, shift work, and the number of work weeks in the preceding 12 months -- were all considered in the research.

Throughout the study, diabetes diagnoses were more common among men, those who were obese, and older age groups, as one in 10 participants developed diabetes. However, the gender disparity came into play when considering the number of hours spent at work per week. For men, adding hours to the workweek didn’t affect the risk of diabetes; in fact, the risk tended to decrease. However, that wasn’t the case for women.

Women working 45 or more hours per week increased their chances of being diagnosed with diabetes by 63 percent as opposed to those who worked 35-40 hours. That risk decreased only slightly when adding factors such as physical activity levels, smoking, BMI, and alcohol consumption.

A look at the results

When looking at the results from the study, there are several outside factors at play.

For starters, participants’ working hours were only measured at one point in time. Additionally, the medical records didn’t reveal what type of diabetes the participants developed, though type one accounts for only one in 20 cases in adults. Also, as an observational study, no definitive causal effect can be determined.

While there is no definite explanation as to why the gender difference exists in this study, the researchers attribute it to women working longer hours, and then coming home to deal with the pressures of the household chores and family responsibilities.

“Considering the rapid and substantial increase of diabetes prevalence in Canada and worldwide, identifying modifiable risk factors such as long work hours is of major importance to improve prevention and orient policymaking, as it could prevent numerous cases of diabetes and diabetes-related chronic diseases,” the researchers wrote.

Starting July 31st, Netflix users will no longer be able to leave written reviews for movies or TV shows on the company’s website. According to an email Netflix sent to users that had recently left written reviews, the change is being attributed to declining usage of the feature.

Early last year, Netflix removed its five-star rating system and changed it to a thumbs up or thumbs down feature. Netflix was criticized for the move, as many thought it was overly simplistic, but the company is adamant that it’s received more ratings since implementing the new rating feature.

Written reviews on Netflix were only featured on the company’s website -- not its apps. Additionally, a Netflix spokeswoman noted that written reviews didn’t affect the way the platform recommended shows to users. Users will still be able to use the thumbs up/thumbs down feature when written reviews become obsolete.

“This feature is only offered on the website and has seen declining in usage over time,” said Netflix spokesperson Smita Saran.

Reasons for the change

Though the news comes when Netflix is seemingly at its peak with over 125 million worldwide subscribers, many believe the removal of written reviews is seen as a way for Netflix to maintain its image.

According to a report by Engadget, Netflix is spending billions of dollars on original content, and may want to limit the potential to be publicly disparaged. As such, users will no longer be able to comment on third-party content that has been removed. The platform will not release information regarding the popularity of its shows -- whether original content or not -- and the written reviews served as a forum for subscribers to voice their opinions on shows and movies they both liked and disliked.

The Engadget report also notes that Netflix has had an issue in the past with users bombarding the review section with negative comments simply because they disagree with the content of certain movies or shows. Just before Netflix removed the five-star rating feature last year, comedian Amy Schumer’s Netflix special tanked in ratings because of individuals who allegedly disagreed with her views. Other recent releases -- like The Last Jedi -- revealed similar trends.

While users will no longer be able to submit reviews after July 30, reviews will still be available on the website through mid-August.

If you've noticed that the prices at your local gas stations have been going up and down like a yoyo lately, you can blame it on the fickle price of oil.

The price went up when OPEC decided to cut production last year. It went down when U.S. shale producers started pumping more, taking advantage of the higher price. But it went up again when an improving economy boosted demand and supplies began to get smaller.

Now, oil prices are slipping a bit, mainly because of concerns that a trade war will slow economies around the world. President Trump has also been busy tweeting his irritation at OPEC, saying the cartel is not doing enough to keep oil prices in check.

After all, the more oil goes up in price, the more expensive gasoline gets. Consumers tend to measure how well they are doing financially by how much they pay at the pump.

Oil prices are falling again

U.S. crude oil is trading on the futures market today for about $73.52 a barrel, down about $1 from the previous session. International Brent crude slipped below $77 on world markets.

While trade concerns may be partly responsible for the decline, the industry was surprised to learn this week that oil stockpiles in the U.S. are getting larger, not smaller.

The U.S. Energy Information Administration (EIA) reports inventories rose by 1.3 million barrels last week, the first increase in three weeks.

"The surprise build in total crude stocks gave market observers pause amid a slew of other factors influencing the oil market, including increasing geopolitical factors – in Iran, Libya, and Venezuela – potentially destabilizing global supply and high crude exports from the U.S.," AAA said in a statement.

Volatile gas prices

Those other factors have not only driven up oil prices this year, they've also increased gasoline prices.

Refineries purchase oil on the futures market for production, and what they pay influences what gasoline distributors pay and what retail gas stations charge consumers.

According to the AAA Fuel Gauge Survey, the national average price of gasoline is $2.86 a gallon, just a penny more than last week but eight cents less than a month ago. As usual, where you happen to be driving determines how much you pay.

Motorists in California are currently paying an average of $3.66 a gallon for regular and $3.92 for premium. But drivers in South Carolina are filling their tanks with regular for $2.53 a gallon.

More people found jobs last month, but even more were looking for one, so the nation's unemployment rate rose to 4 percent, from 3.8 percent in May. The economy added 213,000 jobs.

There was an increase in the number of jobs created in professional and business services, manufacturing, and health care, while retail trade lost jobs.

Black unemployment, which fell to a record low in May, rose in June to 6.5 percent.

"Incorporating revisions for April and May, which increased nonfarm payroll employment by 37,000, monthly job gains have averaged 211,000 over the past 3 months," said William Wiatrowski, Acting Commissioner Bureau of Labor Statistics.

The overall unemployment rate rose because more people were looking for jobs last month. Economists see it as an encouraging sign because it suggests people who had stopped looking for a job are trying to reenter the labor force.

More than 2 million reentered the workforce

The number of people who re-entered the workforce increased to 2,184,000 last month, an increase from 1,933,000 in May.

The number of unemployed Americans increased in June by nearly 500,000, to 6.6 million. That's down from 7 million in June 2017.

Job creation might have been greater if employers had been able to find qualified applicants. In a June survey by the ManpowerGroup, employers complained of a talent shortage, especially in the area of skilled tradesmen. In particular, employers said skilled workers -- such as electricians, welders, and mechanics -- are hard to find. They also said many positions as salesmen and drivers are going unfilled.

Despite what appears to be a tightening labor market, average hourly earnings increased by only 6 cents, from $22.52 in April to $22.58. Average hourly earnings for all employees on private nonfarm payrolls rose by 5 cents to $26.98.

On a year-over-year basis, average hourly earnings have increased by 72 cents, or 2.7 percent.

Job growth continues at the fastest rate in the professional and business services sector, which added 50,000 positions in June and has grown by 521,000 so far in 2018. Manufacturing added 36,000 jobs, mostly at factories making durable goods.

Retailers, meanwhile, eliminated 22,000 jobs in June, largely offsetting the 25,000 they added in May.

The Butcher's Blend is recalling extra lean ground beef products sold in Ontario, Canada, that may be contaminated with E. coli O157.

There have been no reported illnesses associated with the consumption of these products.

The following products are being recalled:

What to do

If you think you became sick from consuming a recalled product, call your doctor.

Customers who purchased the recalled products should not consume them, but discard them or return them to the store where purchased.

Fresh off the rollout of a new version of Gmail, Google is now trying to quell a potential storm over reports that it gives developers access to read and analyze the contents of Gmail users’ messages.

The Wall Street Journal (WSJ) reported two apps -- Edison Mail and Return Path -- gained access to Gmail content, but with user permission.

Edison Mail claims its app "extract[s] meaningful, actionable data directly from mailboxes to simplify your users and understand how their preferences are changing in real‑time — from the way they travel to the brands they enjoy most."

Return Path claims its platform connects marketers with nearly 70 percent of the email inboxes worldwide, describing itself as "help[ing] marketers take their email programs to the next level by driving more response and increasing revenue."

In response to the report, Google went on the defensive and outlined exactly what it allows developers to view in a person’s Gmail account.

"We make it possible for applications from other developers to integrate with Gmail—like email clients, trip planners and customer relationship management (CRM) systems—so that you have options around how you access and use your email," wrote Suzanne Frey, Google Cloud’s Director, Security, Trust, & Privacy.

"We continuously work to vet developers and their apps that integrate with Gmail before we open them for general access, and we give both enterprise admins and individual consumers transparency and control over how their data is used," Frey added.

Automatic processing and strict standards

Google vows that while it shows ads in the consumer version of Gmail, those ads are not based on the content of a users’ emails. However, to head off spam and phishing emails from reaching inboxes and to make features like Smart Reply more productive, Google says it conducts "automatic processing" of emails -- a practice that is supposedly common across the industry.

Making sure it doesn’t walk into the same quicksand Facebook did over user privacy, Google wants it known that the company is not compensated by developers for API (application programming interface) access and any developer that wants to create a Gmail-related app has to toe the line and meet two key requirements:

• Accurately represent themselves: Apps should not misrepresent their identity and must be clear about how they are using your data. Apps cannot pose as one thing and do another, and must have clear and prominent privacy disclosures.

• Only request relevant data: Apps should ask only for the data they need for their specific function—nothing more—and be clear about how they are using it.

User privacy remains on high alert

Even though the WSJ report failed to peg Google with any privacy trespassing, it reminds everyone -- developer, provider, and user alike -- that the world is watching when it comes to data privacy, thanks to Facebook’s privacy negligence. And while it may seem a little undiplomatic, Google puts the onus directly on the end-user in saying "You control your data."

"Before a non-Google app is able to access your data, we show a permissions screen that clearly shows the types of data the app can access and how it can use that data," wrote Frey in her blog post. "We strongly encourage you to review the permissions screen before granting access to any non-Google application."

Take a Google privacy checkup

If you’re one of the 1.2 billion consumers with a Gmail account, there are steps you can take to tighten up your privacy settings. Those include:

• Adjusting your ad settings.

• Taking a "security checkup." That will show any non-Google app that’s been granted access to your data. It will also highlight any potentially risky apps you have given permission to but may want to turn off going forward.

Gmail users can also view and control permissions within myaccount.google.com under "Apps with account access."

Amazon’s cashier-less stores -- Amazon Go -- will be opening a second location this fall in Seattle.

The first store in Amazon’s homebase of Seattle opened this past January after the company spent more than a year perfecting it. Customers will be able to find the second location of Amazon Go in the new Madison Centre office tower.

“We are excited to bring Amazon Go to 920 5th Ave in Seattle,” the company said in a statement. “The store will open in Fall 2018.”

The new second location will be almost two times the size of the first store, topping out at approximately 3,000 square feet, versus the original store’s 1,800 square feet.

GeekWire first discovered that Amazon would be expanding its Go stores based on a number of clues around the city. In addition to a permit filing for an “Amazon retail” project at the building, passersby have been able to peek through the gaps in the window coverings from the sidewalk. Moreover, Amazon Go’s slogan -- “No lines. No checkout. (No, seriously.)” -- is also visible thanks to a gap at the top of the window.

Amazon Go

Amazon’s Go stores are another example of the company’s efforts to continually advance the technological landscape.

At Amazon Go stores, customers don’t have to wait in checkout lines -- there are no lines and no cashiers. Consumers can go through the aisles, picking up what they need. When they’re done, they simply leave the store.

Cameras and sensors throughout the store track what customers are taking home with them, and their credit cards are charged accordingly. Customers must have the Amazon Go app downloaded to their phones, as a unique QR code from the app must be scanned before leaving the store.

At the time of the first store’s opening, the company compared the technology used in its store to the technology in autonomous vehicles.

“Our Just Walk Out technology automatically detects when products are taken from or returned from or returned to the shelves and keeps track of them in a virtual cart,” Amazon said. “When you’re done shopping, you can just leave the store. Shortly after, we’ll charge your card and send you a receipt.”

Continued expansion

Following the success of the first Amazon Go store, the company got the green light to continue expanding to other locations.

This second Seattle location has been discussed for some time, but Amazon Go has plans to soon unveil stores in Los Angeles, San Francisco, and Chicago. Earlier this year, Recode reported that as many as six new Amazon Go storefronts could be popping up before the end of 2018.

A coalition of advocacy groups have filed a lawsuit against the federal government and Attorney General Jeff Sessions in an attempt to stop enforcement of the Fight Online Sex Trafficking Act (FOSTA), a law that won bipartisan support and the president’s signature last spring.

While sex trafficking is already a crime, regulators who championed FOSTA claimed that their new legislation would prevent pimps from prostituting women against their will by also holding any online service that they used to commit the crime liable.

For the first time in over two decades, entities ranging from Backpage.com, a classifieds website that is known to profit from prostitution ads, to CloudFlare, an internet content delivery network that simply counted a social networking site for sex workers among its clients, may risk criminal prosecution or lawsuits based on users’ third-party content

(The United States government is already prosecuting Backpage on pimping and money laundering charges, but the case was brought against them before FOSTA went into effect).

A “vaguely defined” law

Critics who fear widespread internet censorship note that FOSTA fundamentally changed the Communications Decency Act, the law partly credited for allowing the internet to thrive. Under FOSTA, any website or online service that authorities determine to have helped “facilitate” sex trafficking could be included in a sex-trafficking sting or vulnerable to lawsuits.

Sex workers, even those who work in legal industries like pornography, saw many of the online services that they had depended on for their safety and income disappear overnight. Community workers said that FOSTA would do little to deter prostitution and instead would send more sex workers to the streets and into unsafe situations.

Human Rights Watch, which includes sex worker safety and internet free speech among the many issues it champions, is now included in the group suing the feds to stop what they describe as a “vaguely defined” law.

“FOSTA says third parties can’t post content that promotes or facilitates prostitution but doesn’t define what it means by ‘promote’ or ‘facilitate,’” Human Rights Watch explains. “Fear of prosecution may prompt websites not to share our research findings, or individuals not to share our advocacy on social media.”

Joining Human Rights Watch in their legal effort is the Woodhull Freedom Foundation -- which is another human rights’ group -- the Electronic Frontier Foundation, and the Internet Archive, which both promote internet freedom-of-speech issues. A sex workers’ activist, a massage therapist, and a law firm that often litigates First Amendment cases are also joining the effort. (The Electronic Frontier Foundation and the law firm are representing the plaintiffs as their attorneys but are not parties to the suit themselves).

The lawsuit reflects “a cross-section of concerns” held by internet and free speech activists and sex workers, one community organizer told RollingStone.

The lawsuit is asking for a preliminary injunction, which would prevent authorities from criminally prosecuting or suing online businesses under FOSTA should a judge rule in the plaintiffs’ favor.

Many smartphone users are paranoid that their phone is secretly listening to their conversations in order to serve up targeted ads. To find out whether that popular theory is true, researchers at Northeastern University recently conducted a study of more than 17,000 apps to find out if any of them actively overhear or record user activity.

The researchers found no instance of any app unexpectedly activating the microphone or dispatching audio files without a user’s permission. Of the 17,260 Android apps included in the year-long study, over 9,000 had permission to access the camera and microphone. The researchers used an automated program to interact with each app and then analyzed the traffic generated.

Although the researchers did not find any evidence of apps secretly recording their user to serve up targeted ads, the team found at least one instance in which an app sent screen recordings and screenshots to a third-party mobile analytics company.

Recorded what users were doing within the app

The researchers found that a popular food delivery app called GoPuff recorded and sent screen recordings to a mobile analytics company called AppSee. The app recorded footage of a screen where users had to enter their zip code.

After being contacted by the researchers, GoPuff added disclosure of this policy to its privacy policy and removed the AppSee SDK. AppSee also claims it deleted the recordings it had obtained.

“In this case it appears that Appsee’s technology was misused by the customer and that our Terms of Service were violated,” AppSee's CEO told Gizmodo. “Once this issue was brought to our attention we’ve immediately disabled tracking capabilities for the mentioned app and purged all recordings data from our servers.”

The researchers didn’t definitively conclude that smartphones never record users without permission. They only said that they did not find find any evidence of the practice in their study. The study had its limitations, including the fact that the automated systems might have missed some audio files processed locally on the device.

Facebook has announced that it’s shutting down three of its apps due to low usage. The apps that will be shut down include Hello, tbh, and Moves.

In a blog post, the company said it’s axing the apps to keep the company from getting stretched too thin.

“We regularly review our apps to assess which ones people value most,” Facebook said. “Sometimes this means closing an app and its accompanying APIs. We know some people are still using these apps and will be disappointed -- and we’d like to take this opportunity to thank them for their support. But we need to prioritize our work so we don’t spread ourselves too thin. And it’s only by trial and error that we’ll create great social experiences for people.”

Shutting down apps

Hello is an Android-only address book app, which Facebook launched in 2015. The app allowed users to combine their Facebook information with their phone’s contact information.

Tbh (which stands for the acronym “to be honest”) is an anonymous social media app aimed at high school students, which Facebook acquired just eight months ago. The app allowed teens to share opinions via anonymous polls, as well as give positive feedback to friends. It was downloaded over 5 million times in a matter of weeks after it was launched, but that momentum didn’t continue.

"[For tbh] it seems like after an initial burst of downloads, that usage was too low," Thomas Husson, vice president at research firm Forrester, told CNN Money.

The third app that will be shutting down is Moves, a fitness tracker which Facebook bought in 2014. Moves was relatively popular, having even once earned an “Editors Choice” recognition from Apple. Nonetheless, Facebook has still decided to shut down the app and its API at the end of July. Users have the option of downloading their data before the app closes.

Facebook will delete the user data from all three of these apps within 90 days.

The U.S. Commerce Department is allowing China’s ZTE to partially resume business operations while regulators mull over whether its seven-year ban should be lifted.

From July 2 through August 1, the company’s restrictions will be temporarily eased so that ZTE can provide support for telecom networks and ZTE phones that were available to the public on or before April 15, when the company was initially banned from receiving crucial parts from U.S.-based suppliers.

It’s not clear whether a permanent order will follow, but ZTE is expected to be in full compliance with U.S. demands by Aug. 1, Bloomberg reports.

The telecom giant was hit with the ban almost three months ago after it failed to follow through with penalties it received for exporting sensitive technology to Iran and North Korea. It was forced to shut down operations and has been largely inactive since then.

In May, President Trump said he was considering lifting penalties on ZTE as a favor to Chinese President Xi Jinping. The Trump administration and ZTE settled on a deal that required the company to pay another $1 billion in fines, replace its management team, and hire U.S. compliance officers.

Last week, ZTE followed through with the terms by firing its executive team and appointing a new chairman. The company has reportedly lost at least $3 billion since it was forced to cease major operations in April.

Last month, the Senate voted unanimously to reinstate the ban on ZTE citing national security concerns.

Consumers are increasingly turning to Netflix for their video entertainment, preferring the platform's video-on-demand model to traditional television.

A survey by Cowen & Co., a Wall Street financial services firm, shows 27 percent of consumers said they get most of their television entertainment through Netflix, compared to 20 percent who mostly watch basic cable, and 18 percent who watch over-the-air broadcast television.

The report backs up the recent findings from Leichtman Research (LRG) which shows cable TV providers have lost 3.4 million subscribers since 2012. The largest pay-TV providers lost about 305,000 customers in the first quarter of 2018.

Millennials driving the trend

The Cowen research shows young adults are clearly driving the trend. Nearly 40 percent of adults 18 to 34 list Netflix as their preferred video platform, compared to 12.6 percent for basic cable and 7.5 percent for broadcast TV.

Netflix also holds a dominant position over both YouTube and Hulu among this age group, building it by providing collections of popular TV series to supplement its movie offerings. In recent years, Netflix has spent billions of dollars producing original content to solidify its leadership position.

Currently Netflix offers three subscription plans, but might soon offer a fourth. The company has confirmed to CNET that it is testing Netflix Ultra, a subscription plan that would allow four devices to view Netflix content in HD audio and video at the same time.

Current plans

The current Netflix Basic plan costs $7.99 a month and allows content to be viewed on only one device at a time. Standard, which costs $10.99, allows content to be shown on two devices at the same time and Premium, which costs $13.99 a month, allows streaming to four devices simultaneously.

Netflix appears to be testing the new tier in European markets, such as Germany and Italy. The Italian blog Tutto Android first reported the testing of Netflix Ultra, with a price point of approximately $16.99 a month.

CNET cites a Netflix spokesperson as saying the company is currently testing several different price points to learn "how customers value Netflix."

The fact that research shows Netflix holding a dominant position in American living rooms could give the company confidence that it can launch a more expensive subscription level.

The Federal Trade Commission (FTC) has stopped a group of San Diego-based marketing companies from conducting free trial offers that the agency called deceptive to consumers.

The FTC obtained a federal court order against three firms -- Triangle Media, Jasper Rain Marketing, and Hardware Interactive. It charged the companies of leading consumers to believe that they were being offered a free trial, when in actuality they were being sold products without their knowledge or consent.

"Defendants advertise, market, promote, distribute, and sell skincare products, electronic cigarettes, and dietary supplements online," the FTC said in its complaint. "Defendants claim to offer trials of these products for just the cost of shipping and handling, typically $4.95 or less."

Charged as much as $98

But in reality, the FTC said some consumers who accept the trial offers got charged as much as $98 for a single shipment, then enrolled them in a subscription program without their knowledge or consent, charging their credit cards each month.

"Consumers who discover Defendants’ charges and seek a refund often find that they are unable to get their money back because of Defendants’ undisclosed refund restrictions," the FTC charged. "Defendants have brought in tens of millions of dollars through their deceptive trial offers."

The FTC successfully petitioned the court for a temporary injunction against the companies while the case is decided in court.

Very common before 2010

Free trial offers that ended up enrolling consumers in unwanted subscriptions were once very common, but they have been pervasive since Congress passed the Restore Online Shoppers' Confidence Act in 2010.

Previously, many third party marketers had relationships with other well known companies. After a consumer completed a purchase with that well known company, the third party marketer offered the consumer a free trial of a product.

Many times consumers accepted these offers, unaware that the well-known company they were doing business with was sharing their credit card information with the third party marketer, who then enrolled them in an ongoing subscription program, charging their credit cards each month.

The Restore Online Shoppers' Confidence Act requires any third party marketer making these kinds of offers to clearly disclose all material terms of the transaction and obtain the consumer's express informed consent to the charge.

And perhaps more importantly, the seller must obtain the number of the account to be charged directly from the consumer, not from another company with whom the consumer is doing business.

"Free trial offer" should be a red flag for consumers, especially those making online purchases. Free trials are rarely free, especially if consumers are required to provide credit card information in order to receive it.

Competition in the restaurant business is heating up and consumers are benefiting from it.

The 2018 American Customer Satisfaction Index (ACSI) finds full service and fast food restaurants have spiced up menus and implemented more mobile ordering options.

When it comes to accommodations and food services, overall customer satisfaction is up 1.8 percent year-over-year to a score of 79.4 on ACSI's 100-point scale. Full-service restaurants rose 3.8 percent to an ACSI score of 81, while fast food restaurants gained 1.3 percent to a score of 80.

“As the economy improves, consumers have more money to spend, and they’re dining out more,” said David VanAmburg, managing director at ACSI. “At the same time, restaurants are adapting their menus and technology in line with shifting consumer preferences, as millennial tastes for fresh food, mobile ordering, and automated kiosks take hold."

Efforts are paying off

VanAmburg says the research shows restaurants are working harder to make consumers happy and it appears to be paying off -- for some more than others.

Among full service restaurants, Texas Roadhouse vaulted into the top spot this year, rising 1 percent to lead the field with an index score of 83. Cracker Barrel, 2017's champion, fell 4 percent into a second place tie with Longhorn steakhouse.

Olive Garden also lost some ground from last year, but its score of 81 put it in third place. Outback Steakhouse, Red Lobster, Red Robin, and TGI Fridays all tied at 79, which is below the industry average.

But the showing is a big improvement for TGI Fridays and Red Robin, which rose 4 percent and 8 percent from 2017, respectively.

ACSI says Red Robin's impressive gain is largely due to its improved menu, online ordering, and call center support, all of which are credited with fueling a 40 percent increase in off-premises sales in the first quarter year-over-year and resulted in major gains in customer satisfaction.

No contest

In the race for fast food customers, Chick-fil-A remains Secretariat, well out in front of the rest of the field. The restaurant chain maintained its impressive index score of 87, well above the industry average and far out in front of its closest competitor, Panera Bread, which scored a respectable 81.

Subway is next with a score of 80, followed by Arby's with a 79. Both are down 1 percent from last year. Starbucks rose 1 percent to tie Dunkin' Donuts at 78.

Among pizza chains, ACSI says Pizza Hut made a huge improvement from 2017, moving into a tie with Papa John's.

Burger chains lagged behind the rest of the fast food industry this year. Wendy's 1 percent rise from last year to 77 was good enough to take home the prize. McDonald's was dead last, with a score of 69, for the third straight year.