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How does Netflix make money and why is it at a loss?
The financial strategy of the global leader in the streaming-on-demand entertainment business

Reading time 5 minutes

During the three-month period, the streaming giant laid off around 450 employees due to a loss of a raft of subscribers. According to the statistics provided by Macrotrends, from 2014 to 2019, the loss of Netflix has only increased, although the situation was rectified in 2020 and the coronavirus pandemic, which brought in a profit of almost two billion USD, 2021 again ended with negative indicators for the platform. Many experts attribute this situation in the market to the economic model in which the platform operates.

THE BIRTH OF STREAMING AND THE DEATH OF CABLE

In 1999, Netflix started as a DVD rental service, offering customers an unlimited monthly cassette subscription, as well as a personalized movie recommendation system. To create a large movie library, the company purchased the rights and licenses to a wide variety of content, part of an online cinema portfolio that still includes these acquisitions.

A decade later, Netflix pioneered the Internet streaming market, while other media giants offer cable TV subscriptions for $100, Netflix only requires its subscribers from 8 up to 15 dollars. In addition to the pricing policy, viewers are bribed by other factors: multiple people can use the same account from different devices, favorite shows can be viewed at any time, and the library constantly being replenished with hit shows that Netflix buys the rights to and content of its own production.

All this caused consumers to abandon cable subscriptions in favor of streaming, and movie and TV series creators not to release their products on TV, simply because Netflix and its similar companies offered more money than cable channels that were losing money. According to Bloomberg’s statistics in 2018, 6 people give up cable TV every minute, of which in return, many people subscribe to online services.

THE FLYWHEEL MODEL

Despite the removal of these competitors, Netflix is still operating at a loss. This is largely due to their economic policy, known as the “flywheel method”. It works like this: the service takes money from a user’s subscription and spends it on content creation, content distribution and creating a pleasant user experience, which forces the user to renew the subscription theirs and everything went back to the way it was. The problem is that Netflix spends more than $500 per user while it only brings the company about $10. This difference is covered by the new viewer’s subscription, i.e. your payment for one subscription offsets the cost spent by the user who purchased it before you and the amount the next subscriber will reimburse you.

The problems of this plan will become apparent once Netflix hits the subscription threshold – there will simply be no potential buyers left in the US and the world able to cover these losses with their own money. Analysts estimate that the maximum number of Netflix subscribers in the US is 60-90 million and around 200 million in the rest of the world, while in the first quarter of 2022 there were around 80 million people in North America and about 150 million people in the rest of the world.

Simultaneously, due to the peculiarities of the market, a subscriber outside the United States brings the company much less money than an American: for example, the cost of a subscription in India at the start was only $3 – three times less than in the company’s homeland.

By way of explanation, in order for the flywheel to continue working, Netflix is forced to look for new subscribers outside the United States, in the face of the fact that local markets cannot offer a profit comparable to the United States, as well as to raise prices in richer and more developed countries, which already leads to an outflow of subscribers.

COMPETITORS AND WOLVES OF WALL STREET

For Netflix, the situation is compounded by increased competition: almost every major corporation has already launched or is preparing to launch its streaming service. Coincidently, knowing the need for their competitor to raise prices, other streaming services deliberately underestimate the cost of a subscription: Disney+ asked for only $ 7 at the beginning, while providing exclusive and discussed content like the new parts of Star Wars and the Mandalorian series, as well as absorbing another online movie theater Hulu. In other words, purchasing Disney+ for a price half the price of a subscription to Netflix, the user received two streaming services at once.

Netflix official account tweet saying "Love is password sharing" — Netflix official account tweet saying “Love is password sharing”

Simultaneously, Netflix itself is also forced to take not very pleasant measures for users, along with the mentioned price increase, the company also wants to ban users from sharing passwords with loved ones, and about 1/4 numbers all subscribers do this, although the company previously considered this function as one of the important being.

This policy affects the number of people who unsubscribe. Users are also canceling subscriptions due to the lifting of quarantine restrictions in many countries: people work, study, travel, and less sit at home in front of computers and TVs. As a result, in the second quarter of 2022, one million people canceled their Netflix subscription, and a similar number of unsubscribes is expected before the end of the year.

Netflix's largest shareholder Bill Ackman — Netflix’s largest shareholder Bill Ackman

This situation in the market also affects the investment attractiveness of the company: in the past year, the value of shares has decreased by more than 60%, in such a crash, one of the company’s largest shareholders lost more than a billion dollars, and then sold his entire three million shares.

Despite the unfavorable economic situation and loss, Netflix is unlikely to stop, in a letter to shareholders the company assured that canceling family subscriptions will only lead to new users. Streaming and the loss of subscribers are also tied to macroeconomic factors: the consequences of the pandemic and the Russian invasion of Ukrainian territory. In addition, the company will not reduce its content costs: in 2021, online cinemas have spent 17 billion dollars on it.

The first Monday in May
From the ball for everyone to the Oscars in the world of fashion in 75 years

Reading time 10 minutes

Currently, all fashionable houses, fashion publishers, and media figures mark the first Monday in May on their calendars. This is one of the main days of the year for the fashion industry – the Met Gala. How has this significant event changed over its 75 years of existence?

Eleanor Lambert

Элеанор Ламберт, основательница бала Met Gala — Eleanor Lambert, người sáng lập Met Gala

The story of Met Gala began with Eleanor Lambert. She worked in advertising in the art and fashion industry, managing campaigns for Jackson Pollock¹ and many other artists. She also headed the PR department of the Whitney Museum of American Art and in 1948, organized the first fashion week in New York City. It was also around this time that the Costume Institute opened at the Metropolitan Museum of Art in the US. It needed funding, and Eleanor, who supervised the project, decided to hold a social ball. This helped to both raise awareness and funds.

Admission to the event was open to anyone, with tickets available for $50, which included the rental of a garment from the Costume Institute archive. It is worth noting that the Met Gala is not just a party within museum walls. Guests were effectively financing art by purchasing tickets. Although the museum’s exhibition did not dictate the dress code back then, as the event itself was not held at the Metropolitan, but at the Waldorf Astoria hotel or Rainbow Room restaurant. The theme of the ball was also not specified, so guests wore cocktail dresses and black tie. Even the first Monday in May was not yet a significant date – Met Gala was first held in December, and the date of the event was not fixed.

Diana Vreeland

Диана Вриланд, изменившая репутацию Met Gala в мире моды — Diana Vreeland, who changed the Met Gala’s reputation in the fashion world

If Eleanor was the founder of the classical Met Gala, then Diana Vreeland brought the ball closer to what we know today. Diana worked at Harper’s Bazaar for 25 years before becoming the chief editor of Vogue US, from which she was fired in 1972. In the same year, at the age of 69, she became a consultant to the Costume Institute. This department of the Metropolitan Museum was one of the most unpopular. The annual ball was not enough to attract public attention and increase the number of visitors. Diana’s invitation to this position was supposed to improve the situation: she was considered not only one of the most stylish women in America but also a bold innovator in the fashion industry.

Expectations were met. Already in 1974, Diana organized the exhibition “The World of Balenciaga” and made it the theme of the Met Gala. If previously the dress code of the event was just ceremonial, now guests had to prepare and choose an outfit that corresponded to the spirit and style of the Balenciaga fashion house. This ball is considered a turning point in the modern history of the Met Gala.

Певица Шер на своем дебютном Met Gala в 1974 году — Singer Cher at her Met Gala debut in 1974

Diana handpicked her guests for the Met Gala. Actresses Berintia and Marisa Berenson, singer Cher, and Countess Jacqueline de Ribes were not random visitors, as the event required distinguished names to elevate the status of the now main fashion event in the fashion industry. Loyalty to ordinary visitors had to be sacrificed, as the lavish dinner was eliminated and the creativity of Cristobal Balenciaga was not easily understood by all. Therefore, the number of visitors decreased, but not for long.

The Met Gala began to set the tone and define fashion trends. In 1976, the theme was “Diaghilev: Costumes and Set Designs of the Ballets,” where Yves Saint Laurent presented his new “Russian Collection,” and guests, including Jacqueline Kennedy Onassis, appeared in sumptuous fur coats, marking the return of the a-la russe style. By the way, it is believed that Jacqueline was the one who nominated Diana Vreeland as a consultant to the Costume Institute.

Pat Buckley

Pat Buckley, wife of American writer Christopher Buckley, had been assisting Diana in organizing the ball since 1979. Her phone book included Nancy Reagan, actress and first lady of the United States, and Betsy Bloomingdale, a socialite, who were, of course, invited to the Met Gala. This made the event more prestigious and increased museum revenues.

When Diana stepped away from the Costume Institute in 1985, philanthropist and socialite Nan Kempner joined the organizing committee (although she asked to be called simply a homemaker). Diana Vreeland said of her, “In America, there are no chic women. The only exception is Nan Kempner.”

By this time, tickets were already selling for $1000, and among the guests were not only socialites, but also representatives of fashion houses such as Burberry, Chanel, and Versace. The Costume Institute ball thrived and became increasingly lavish, but it was still difficult to compare it to the Met Gala that Anna Wintour would recreate.

Anna Wintour

Анна Винтур на своем первом Met Gala в 1995 году — Anna Wintour at her first Met Gala in 1995

By 1995, when Anna began organizing the Met Gala, she had been the editor-in-chief of Vogue for eight years. Her arrival marked a new era for the Costume Institute ball, and her influence was literally reflected in the Institute, which since 2014 carries her name.

If Diana Vreeland simply invited famous people to the event, Anna herself made up the guest list and seated them at the tables. The ticket price rose to $30,000 and continues to grow.

Дизайнер Александр Макуин с актрисой Сарой Джессикой Паркер на Met Gala 2006 года — Designer Alexander Makvin with actress Sarah Jessica Parker at the 2006 Met Gala

New traditions emerged, such as a designer walking the red carpet with the model he dressed. In 2006, it was Alexander McQueen and Sarah Jessica Parker, and in 2009, Marc Jacobs and Kate Moss. The event now includes many more Hollywood stars, supermodels, and singers.

Дженни Ким на Met Gala в 2023 году — Jennie Kim at the Met Gala in 2023

Everyone who is interested in fashion keeps an eye on the Met Gala. This is where the trajectories of trends are determined, and where it is decided which fashion house and celebrity will become trendsetters. By 2023, this was well noticed. K-pop performers, for example, are becoming increasingly popular not only in Asia, but also in America and Europe, so inviting some of them to the ball became very symbolic. This undoubtedly raised their popularity even higher, and we can expect them to become ambassadors for even more fashion houses. This year, Blackpink’s Jennie Kim, who collaborates with Chanel, attended the ball. There are also brands that did not dress anyone at the ball this year. Saint Laurent and Alaïa, for example, skipped the Met Gala because their founders were at odds with Karl Lagerfeld, in whose honor the ball was held.

Preparation for the Met Gala takes eight months, so we will know the theme of the next ball well before the first Monday in May 2024.

City Versus Ocean
How Global Warming is Altering the Planet

Reading time 5 minutes

Sea level rise is a pressing concern in around two-thirds of the world’s largest cities such as New York, Mumbai, and Shanghai. Secretary-General of the United Nations, António Guterres, has cautioned that if appropriate action is not taken, rising sea levels could result in “a massive exodus of entire nations on biblical proportions.”

The severity of the issue

Global warming is affecting sea level by causing glaciers and ice sheets to melt, thus adding water to the oceans. Higher temperatures trigger the expansion of sea water, thereby increasing its volume. Since 1880, sea levels have risen by approximately 23 centimeters.

Жители Пангуло, расположенного на окраине Манилы, Филиппины, теперь передвигаются на лодках. — Residents of Pangulo, located on the outskirts of Manila, Philippines, now travel by boat

Although the extent to which sea levels will increase is dependent on how global warming progresses, scientists predict that if there is no halt to climate change, the ice sheets in Antarctica and Greenland might eventually move from a gradual melting process to collapsing altogether. The precise timing of this so-called tipping point is uncertain.

A study done by Denise Lu and Chris Flavel showed that nearly 150 million people currently reside on land that will be under high tide by mid-century. This number is expected to rise as people move to large cities located on the coast seeking a better life.

How cities can adapt

A.R. Siders, an assistant professor of climate change adaptation at the University of Delaware, has suggested several ways in which cities can cope with rising sea levels. One such strategy is for officials to avoid constructing buildings in flood-prone areas. They could also try to prevent water by building dams and breakwaters. They can adapt the city to higher sea levels by constructing more houses on high ground and fewer on low ground.

Волнолом, волнорез или бреква́тер, больверк — гидротехническое сооружение на воде, предназначенное для защиты береговой линии или акватории порта от цунами и течений льда. — Breakwater or bolverk – a hydraulic structure on the water, designed to protect the coastline or port water area from tsunamis and ice currents

Another alternative is to withdraw or relocate houses and infrastructure to safer areas. This is exactly what the Indonesian government is doing by constructing a new capital on hillocks from scratch. According to the United Nations, large-scale retreat, the most extreme and costly form of adaptation, will soon become necessary. Rotterdam, in the Netherlands, employs permanent sand dunes and dams, as well as water storage tanks. Ho Chi Minh City in Vietnam is looking to enhance drainage systems and shift freshwater supplies to protect against seawater intrusion. Of course, these projects require a considerable amount of money. Developing countries demand that wealthy countries, which are mainly responsible for climate change, honor their climate assistance obligations.

At the United Nations Climate Summit held in Glasgow in 2021, countries agreed to double the funds available for adaptation to developing countries by 2025, compared to levels seen in 2019. During this decade, developing countries, on average, need almost $200 billion yearly. The cost of adapting to climate change in developing countries is expected to reach $160-340 billion by 2030 and increase to $315-565 billion by 2050.

For those who are tired of staying at home
What to watch when unable to travel, but still crave the sense of adventure

Reading time 6 minutes

Going on a trip is never a bad idea. However, what can one do if stuck at work instead of walking along the streets of Paris at night or drinking cocktails on a Turkish beach? We present a compilation of 5 films that allow you to go on a small journey without leaving your home.

“Eat Pray Love” (2010), directed by Ryan Murphy

Кадр из фильма «Ешь, молись, люби» — Shot from the film “Eat, Pray, Love”

It is a famous adaptation of the memoirs of American writer Elizabeth Gilbert. The main character of the film, a middle-aged woman named Elizabeth, realizes one day that she is not living the life she dreamed of. She files for divorce after eight years of marriage and embarks on a journey in search of the meaning of life, visiting three destinations: Italy, India and Bali. In each of these countries, Elizabeth meets new people, tests her physical and spiritual abilities, and, of course, enjoys delicious food. The film offers a palette of completely different landscapes from distant corners of the planet, and Julia Roberts in the lead role becomes the best guide to cinematic tourist routes.

“Vicky Cristina Barcelona” (2008), directed by Woody Allen

Кадр из фильма «Вики Кристина Барселона» — Shot from the film “Vicky Cristina Barcelona”

It tells the story of two American women, Vicky and Cristina, who decide to spend their summer holidays in Barcelona. The trip becomes even more interesting, and the city attracts the girls even more, when they meet a local artist, Antonio. Best friends are drawn into a love triangle when both start receiving attention from Antonio. The situation becomes even more complicated when the artist’s ex-wife unexpectedly appears. The summer romance becomes more serious and complicated, but does not lose its attractive summer mood. And beautiful views of Barcelona and walks of the heroes along recognizable famous places of the city only add attraction to the short but bright love story.

“Midnight in Paris” (2001), dir. Woody Allen

Кадр из фильма «Полночь в Париже» — Shot from the film “Midnight in Paris”

It is another ode to love for Europe from Woody Allen. This time the story tells of the screenwriter Gil Pender, who flies to Paris with his fiancee to visit her parents. By coincidence, at one point Gil finds himself completely alone on the night streets of Paris. However, his solitude does not last long – a stranger in an antique car suspiciously reminiscent of F.S. Fitzgerald invites the hero to take a ride with him. The trip ends with Gil magically transported to the 1920s. Now every night he runs off to wander the night streets of Paris in the company of outstanding people of the past century. Paris in this film is represented in all its beauty – from cafes in the Art Deco style of the 1920s to the Champs-Élysées and the modern illumination of the Eiffel Tower.

“Lost in Translation” (2003), dir. Sofia Coppola

Кадр из фильма «Трудности перевода» — Frame from the film “Lost in Translation”

A film for those who are no longer surprised by European holidays. Famous actor Bob Harris and recent college graduate Charlotte – Americans who find themselves in the heart of Japan, in Tokyo. They meet in the hotel bar when both of them are unbearably lonely in the noisy metropolis. Charlotte is upset that she rarely sees her photographer husband, who is constantly disappearing on shoots, and Bob is going through a midlife crisis, disappointed in his marriage and career. Two lost people in a short time become each other’s main support and shoulder to cry on. This is a story not about love, but about a very touching and fleeting friendship surrounded by Japanese skyscrapers.

“The Secret Life of Walter Mitty” (2013), dir. Ben Stiller

Кадр из фильма «Невероятная жизнь Уолтера Митти» — Shot from the film “The Secret Life of Walter Mitty”

Walter Mitty is an ordinary office worker holding an ordinary position in the “Life” magazine’s illustration department. He spices up his routine life with adventures that he ventures into in his head, existing between the mundane reality and the fantastic fictional events. However, a series of unexpected events force Walter to step out of his comfort zone and go in search of a photographer, who requires a unique picture for the magazine cover. The Himalayas, Greenland, Iceland – all these places are in the itinerary of the newly-minted traveler.

Recorded Past
The Cave Paintings of Altamira

Reading time 7 minutes

Altamira is a cave in Spain that preserves the cave paintings of the Upper Paleolithic era². The cave is located near the city of Santillana del Mar and was used until approximately 12,000 BCE, when the entrance was blocked by a landslide. Recent research has shown that the drawings were made between 34,000 and 23,000 BCE.

Discovery of the Cave

The entrance to the cave was discovered in 1868 by a local hunter, Modest Cubillas Peras. His dog got stuck in the rocks, and in an attempt to free the animal, Modest discovered the entrance. He told the owner of the land, Count Marcelino Sanz de Sautuola, about the cave. However, it was only in 1879 that the Count visited Altamira with his nine-year-old daughter, Maria. She was the one who saw the paintings on the wall and drew her father’s attention by shouting, “Look, daddy, bulls!”

Фотография Марселино Санс де Саутуола — Photograph of Marcelino Sanz de Sautuola

The discovery of his daughter inspired Marcelino, who invited archaeologist Juan Vilanova Y Piera. Together, they conducted research and attributed the cave paintings to the Late Paleolithic era. In 1880, Juan and Marcelino released a small brochure in which they described their discovery and the paintings. However, the archaeologists faced condemnation from the scientific community. Other scientists believed that Marcelino had made the drawings himself and that they had no relation to the prehistoric era. The painted images in Altamira were perceived as a forgery. Several years after Marcelino’s death, similar paintings were discovered in other places, which dispelled the doubts of the scientific community. In 1902, Emile Cartailhac, Marcelino’s opponent, wrote an article titled “La grotte d’Altamira, Mea culpa d’un sceptique”, or “The Cave of Altamira, My Skeptic’s Mea Culpa.” This work became the scientific acknowledgment of the authenticity of the Altamira cave paintings.

Фотография 8-летней Марии де Саутуола — Photograph of 8-year-old Maria de Sautuola

Structure of the Cave

Altamira stands out among other caves in the area. The entrance is located on a small hill, and the temperature inside is about 14 degrees Celsius. The cave, which is now 270 meters long, is divided into several parts. At the entrance, there is a so-called “vestibule,” followed by the “Great Hall of Polychromes,” which is about 18 meters long and contains 16 clear large images. The colorful paintings cover even the ceiling of the Great Hall, which is dubbed the “Sistine Chapel of the Stone Age.” Also, in Altamira, there is the “Great Hall of Unclear Drawings,” where the paintings defy interpretation. Four more halls follow, containing many small drawings.

Потолок в Большом зале Альтамиры — Ceiling in the Great Hall of Altamira

How Primitive People Painted and Why

Primitive people executed cave paintings in Altamira using wood charcoal, yellow-red ochre, hematite³, and other natural pigments. The images were applied with fingers, possibly with pieces of leather or wooden sticks. There are also many protrusions and cavities in the cave that primitive artists used to give the paintings a natural volume. The cave paintings are characterized by clear lines and precision, depicting images of bison, aurochs, horses, boars, palm prints, and much more.

There is a version that suggests that the primitive man created these drawings due to religion. Thus, people performed rituals for fertility and successful hunting. Some researchers argue that the voluminous drawings depict the Great Goddess – a deity of primitive religion that brought an abundance of food, health, and other earthly blessings. There are many anthropomorphic⁴ drawings of this type in Altamira.

Антропоморфное изображение в анфас — Anthropomorphic image in full face

The cave also contains many geometric drawings and other signs the meaning of which is impossible to understand. Researchers suggest that this is something akin to a map, perhaps of the cave itself, in order to show other artists where and what to draw.

Геометрические рисунки в пещере — Geometric drawings in the cave

It is unknown which tribe created the drawings in Altamira, but the images were undoubtedly created by primitive ancestors. Their knowledge of painting caused scientists in the 20th century to rethink their views on a primitive man, who was not as primitive as they had believed.

Beloved Game of the 80s
On the Inventor of Tetris and the Distributor Wars

Reading time 6 minutes

In the 1980s, the arcade game industry flourished in the United States. It was a standard cultural practice to visit gaming arcades where children and adults spent their leisure time. The influx of visitors increased even further after the introduction of a simple yet engaging game called “Tetris.” Nowadays, hardly anyone is unfamiliar with Tetris as it has been reissued several times, and almost everyone has manipulated the colorful blocks on their screens at least once in their lives. However, only a few know the man who gifted this game to the world and the battles different media magnates fought for it.

Алексей Пажитнов, создатель «Тетриса» — Alexey Pajitnov, creator of Tetris

Contrary to popular belief, Tetris was not invented in the US or even in Europe. The creator of Tetris is Alexey Pajitnov, a Soviet programmer who worked at the Computing Center of the Soviet Academy of Sciences. The idea for Tetris arose in Alexey’s mind in 1984 when he was introduced to the puzzle game of American mathematician Solomon Golomb, “Pentomino”. The essence of Pentomino was to assemble one large figure from several small ones. Inspired by Golomb’s concept, Alexey decided to create something similar but tweak the concept slightly. In his game, the figures had to be assembled in a hypothetical “cup” with the possibility of collapsing into straight rows. The user had the ability to rotate falling elements at their discretion. Soviet computers, however, lacked the computing power to process figures made up of five cubes, as in Golomb’s puzzle. Thus, the number of composite parts in one figure was reduced to four, and thus, Tetris acquired its name (from the Greek “tetra” – four).

Tetris quickly spread in Moscow and beyond the Soviet Union thanks to pirate copies. Around this time, Robert Stein, a Hungarian software importer, learned about the game. During Stein’s trip to Moscow, in an attempt to obtain the exclusive right to the game, Alexey unexpectedly gave Tetris as a gift to the entrepreneur. Stein, in turn, construed the gesture as an unconditional transfer of ownership of the game and permission to dispose of the invention of the Soviet programmer at his discretion.

From that moment on, a war for the right to publish Tetris and earn money with it started among big game distributors. “The Tetris War” involved large companies such as Mirrosoft and Spectrum Holobyte, to which Asian segment manufacturers Atari Games and Nintendo later joined. They all tried to obtain the rights to the game first from Stein and then, after learning that the Hungarian entrepreneur was not the actual owner of Tetris, went to negotiate in Moscow. Interestingly, representatives of different companies even flew to the capital at approximately the same time, so in the hallways of ELOKA, where Alexey Pajitnov went to work, they were guided into different rooms so that competitors would not bump into each other.

The offer from Hank Rogers, who came to Moscow as a representative of Nintendo, interested Pajitnov the most. In the end, on March 21, 1989, all rights to the Tetris version for game consoles were transferred to the Japanese company.

Алексей Пажитнов (слева) и Хэнк Роджерс (справа) — Alexey Pajitnov (left) and Hank Rogers (right)

The history of the battle between the business giants of the gaming industry for Tetris is actually much more extensive and can take up some time. To be precise, it takes one hour and fifty-eight minutes to watch the film “Tetris” by John Baird, which became available on the network on March 31, 2023. The film details the competition between companies and the risks that Alexey Pajitnov encountered while attempting to make the game accessible to users worldwide. It is worth mentioning that the role of the inventor was played by Russian theatre and film actor Nikita Yefremov, despite the fact that the film was produced by studios from the United Kingdom and the United States. The film can be watched online on the Apple TV+ platform.

Никита Ефремов в роли Алексея Пажитнова на кадре из фильма «Тетрис», 2023 — Nikita Efremov as Alexei Pajitnov in a still from the film Tetris, 2023

Private Flights for our Smaller Brethren
As flying with pets becomes increasingly difficult, pet owners turn to private aviation

Reading time 5 minutes

On April 29, twenty passengers boarded a Gulfstream G4 plane flying from Teterboro airport in New Jersey to Farnborough airport, southwest of London – nine dogs, one sphynx cat, and ten humans. This was the first K9 Jets flight of a private jet charter company based in Birmingham, England, founded in response to the growing desire of pet owners to travel with their pets in a comfortable and safe atmosphere.

People wishing to transport their pets on commercial flights must comply with numerous rules that vary depending on the airline. Service animals, which are not considered pets, are allowed in the cabin, but other restrictions apply, such as size limitations – larger pets must be transported as cargo. However, many owners of large dogs fear that during transport in the cargo hold, their pets may be subjected to temperature fluctuations, poor ventilation, and improper handling. Some airlines even refuse to transport large dog breeds.

Ник и Мишель Кутсофтас садятся на рейс K9 Jets вместе с Альбертом, их 2-летним родезийским риджбеком. Источник: The New York Times — Nick and Michelle Koutsoftas board a K9 Jets flight with Albert, their 2-year-old Rhodesian Ridgeback. Source: The New York Times

If the animal is within a certain size range, it must be transported in a carrier – in 2020, the Federal Aviation Administration approved new rules that prohibit pets from being held on laps or leashes during flights, and they must be in an appropriately sized crate. These carriers must fit under the seat in front of the passenger, which may cause some discomfort for those seated in front of or next to them.

According to the US Department of Transportation, in the last decade over 200 domestic pets have died during flights, with the majority being dogs. The department recommended that owners of short-nosed dogs such as pugs and bulldogs consider the risks of transporting them as cargo, citing much higher mortality rates than for other breeds. According to the American College of Veterinary Surgeons, short-nosed dogs have more difficulty breathing than other breeds. These dogs experience breathing problems due to their short snouts and their respiratory conditions worsen during flights at high altitudes in cargo holds, where the temperature can be very high or too low.

Private carriers step in

Боуи, сфинкс, был единственным котом на рейсе K9 Jets. Источник: The New York Times — Bowie the Sphynx was the only cat on the K9 Jets flight. Source: The New York Times

Meanwhile, private air carriers have stepped in to offer comfortable and safe options for transporting pets. Some, such as NetJets and VistaJet, have special programs for domestic animals. On VistaJet flights, pets are fed select meat cuts, offered various toys, and provided with a sleeping area on a soft carpet. Once a person buys a seat, there is no need to pay additional costs for transporting a pet or to purchase an additional seat. Several companies even help customers navigate the restrictions imposed on keeping animals in a particular country and gather all the necessary documents for entry, which is another advantage for their owners.

Initially, K9 Jets offers flights between New York and Paris, Lisbon, and London. Tickets for eight out of seventeen listed flights from May to the end of September have already been sold out. In the fall, the company may expand the service to additional cities, including Dubai. One-way tickets between New York and Europe cost about $9,000 per seat. Domestic animals cannot fly without human accompaniment.

Daddy’s girl
A Collection of Films About Fathers and Daughters

Reading time 6 minutes

World cinema is full of films about complicated relationships between parents and their children. However, for some reason, it is much easier to find a film about a mother with a daughter or a father with a son than to see the interaction between a parent and a child of the opposite sex. This is especially true for girls, who are given much less attention in cinema than the difficult lives of boys.

That’s why we present to you a selection of 5 films about the struggles and joys of relationships between fathers and daughters.

“Sunshine of Mine” (2022), directed by Charlotte Wells.

Кадр из фильма «Солнце моё» — Shot from the film “Sunshine of Mine”

The film that ranked first in Sight and Sound’s list of best films of the year. This partly autobiographical film tells the story of Sophie, an 11-year-old Scottish girl who spends her summer vacation in Turkey with her father. Sophie’s parents have divorced, so for the little girl, this trip becomes one of the few opportunities to find out what her father is living for and what he is thinking about. The complexity of the trip is compounded by the fact that Sophie is in prepubescence, and her father is going through a midlife crisis. Now these two close but distant people have to learn to coexist together, discovering new facets of their relationship.

“The Father” (2020), directed by Florian Zeller

Кадр из фильма «Отец» — Shot from the film “The Father”

Anthony is an elderly man suffering from dementia. His difficult personality makes it difficult for him to get along with his caretakers, so his daughter Anne takes on most of the responsibility for caring for him. Anthony’s illness provokes countless arguments, but Anne stays by his side despite all the pain his words cause her. Essentially, this film is a psychological thriller that doesn’t rely on plot alone. The conclusion may surprise you, but not as much as the interaction between Olivia Colman and Anthony Hopkins, who portrayed the complexity of the father-daughter relationship in an impossible situation. By the way, at the 2021 Oscars, Anthony Hopkins was awarded Best Actor specifically for his work on this film.

“Ice 2” (2020), directed by Jora Kryzhovnikov.

Кадр из фильма «Лёд 2» — Shot from the film “Ice 2”

A sequel to the successful 2018 film “Ice.” Figure skater Nadya and hockey player Sasha, the main characters of the film, have finally married and are planning to have a child. However, the birth is difficult, and as a result, Nadya dies. The film tells the story of how Sasha learns to be a father and cope with all the difficulties of parenthood on his own. And when his daughter grows up, he also tries to figure out where the line between caring and overprotection lies and how not to let his fears harm his little daughter.

“The Whale” (2022), directed by Darren Aronofsky

Кадр из фильма «Кит» — Shot from the film “The Whale”

Charlie lives with extreme obesity, which developed as a result of compulsive eating due to the loss of his loved one. He walks with difficulty and lectures his literature students with the camera turned off because he is ashamed of his appearance. However, his regular and gloomy routine changes when his teenage daughter decides to contact him. Ellie is upset with her father because he once chose a new relationship over his family, but nonetheless begins secretly visiting him. Now Ellie and Charlie are practically starting from scratch and trying to build a relationship burdened with one’s sense of guilt and the other’s childhood resentments.

“Gifted” (2017), directed by Marc Webb.

Кадр из фильма «Одарённая» — Shot from the film “Gifted”

The film is about the fact that sometimes the role of “Dad” can be played by a non-biological father. Frank takes guardianship of Mary, his deceased sister’s little daughter. At some point, the girl starts showing outstanding abilities in mathematics. A real struggle begins for Mary because part of the family believes that it is now necessary to focus on educating the little genius. However, Frank wants Mary to grow up as a “normal” child, surrounded by friends, rather than just books. The desire to give the girl a peaceful childhood, along with his own fears, forces Frank and Mary’s small family to open up to each other from a completely new perspective.

“The Challenge” of the Global Film Industry
How the First Film in Space was Made

Reading time 5 minutes

On April 20, 2023, Russian screens premiered the film “The Challenge” by director Klim Shipenko. The story of talented surgeon Evgeniya Belyaeva could have been just another film about the selfless work of doctors, if not for one crucial detail. Part of the movie was shot aboard the International Space Station (ISS), where the director and lead actress spent 12 days filming.

Клим Шипенко, режиссёр фильма «Вызов» — Klim Shipenko, director of the film “Challenge”

For Klim Shipenko, “The Challenge” was a continuation of his love for space-themed films after the successful release of “Salyut-7” in 2017. According to the director, it was precisely his reluctance to say goodbye to space that led him to contemplate a new project, this time without the green screen and with actual footage from a real space station. So, when the production company Yellow, Black & White, and First Channel’s CEO, Konstantin Ernst, approached him with an offer to take on a space project, Shipenko agreed without hesitation.

Only two additional people could be sent to the ISS for filming, the director and the lead actress. More than 3,000 applications were submitted for the lead female role, from which only about 20 were selected. Actress Yulia Peresild, who eventually starred as the main protagonist, initially did not participate in the casting as she was busy with another project. However, all the selected actresses failed the required medical examination, and after prolonged tests and exams, Peresild landed the role of a space surgeon.

Фото со съёмочной площадки «Вызова», 2023 — Photo from the set of “The Challenge”, 2023

Preparations for the shoot took several months on Earth. During this time, the director and lead actress were trained at the space center, studying equipment, taking exams on the ISS structure, and rehearsing the necessary actions that could be useful during launch, docking, and return to Earth. Klim Shipenko had to lose more than 15 kilograms to meet the necessary medical requirements. On the ISS, he acted as the film and art director, cameraman, and makeup artist. On October 5, a film crew of two and a backup crew of two professional astronauts were sent into space.

Юлия Пересильд на кадре, снятом на борту МКС — Yulia Peresild in a frame taken aboard the ISS

To organize a full-fledged shooting process, special film equipment was delivered to the ISS. In addition to cameras, sound recording and lighting equipment, some non-obvious items were also brought, such as a rugby helmet. As Yulia Peresild later recalled, Klim Shipenko needed a helmet, as he frequently flew backward in weightlessness. Without such improvised protection, his “chance of cutting off his head in the first 10 seconds of flight dramatically increased.” During their stay at the ISS, Peresild and Shipenko shot about 78 hours of footage, some of which made it into the film’s final cut. Filming took place both on the space station and during the crew’s launch and descent. According to the director, approximately 60% of the footage was improvised, as even with minute-by-minute planning for filming days on Earth, it was impossible to anticipate the impact of weightlessness and adaptation to the ISS. To avoid losing footage and to present the unique shots on the big screen, a communication channel was established with Earth, where all recordings were sent daily to the Space Center.

From March 31, the First Channel aired a series called “The Challenge: Firsts in Space” – a nine-part documentary project which detailed the making of the film. All episodes are available online on the First Channel’s website.

Brains’ Race
What neural networks can already do

Reading time 11 minutes

According to research conducted four years ago by MarketsandMarkets, by 2024, the size of the neural networks market was expected to grow to nearly $300 million. In early 2023, media outlets had already published news that Microsoft would invest $10 billion in a chatbot developer based on artificial intelligence – OpenAI. The number of various neural network services is steadily growing, and there is an increasing discussion in the media space about what professions they can replace. In this article we will tell about the most interesting applied abilities of artificial intelligence.

Translators

Neural networks have long been used in automatic translation services such as Google Translate, Yandex Translator and Microsoft Translator. However, the real breakthrough in this field was made by a small German company DeepL with its eponymous translator.

Neural networks can be built based on different architectures, each of which is better suited for a particular task. Finding the right combination of algorithms is the key to making the AI work more accurately. Most translators have been using recurrent neural networks until recently, but they have started to be replaced by a new machine learning model, Transformer, which Google is actively using.

DeepL does not disclose its translation technology, although early campaigns reported the use of convolutional neural networks, which are designed to recognize visual images rather than text. The official site also says it is using some of the mechanisms of the previously mentioned Transformer architecture. The developers’ own tests and comparisons made by ordinary users show that DeepL does translate much more accurately because it is able to capture context:

Сравнение взято с сайта gadgets-news.ru, жирным выделен неверный перевод, а курсивом – неточный. — The comparison is taken from gadgets-news.ru, with the incorrect translation in bold and the inaccurate translation in italics.

It is worth noting that the translator from Google has been significantly improved after the introduction of the Transformer architecture, but DeepL translates virtually error-free.

Among the neural network services, there are some that can translate and dub video, removing the speaker’s voice and leaving the original noises. For example, Neurodub AI can recognize speech in 70 languages:

The working window on the Neurodub site. The video was taken from the author's personal archive. The corrected error and the pop-up warning-line are circled in red. — The working window on the Neurodub site. The video was taken from the author’s personal archive. The corrected error and the pop-up warning-line are circled in red.

Sometimes the neural network makes mistakes, but they can be corrected manually. In the picture above you can see that the AI did not recognize the name of the university correctly and heard “neck” instead of “HSE”. After editing the text in the side menu, you need to click “Apply changes” and the video will be re-voiced correctly. Unfortunately, the service is paid (1 minute – 1 dollar), but you can try the first 15 minutes in test mode.

Photos, pictures, logos

In March 2023, the developers of Midjourney, a popular neural network for generating images, shut down free access due to abuse with deepfakes⁵. Social media users spread pictures of arrested Donald Trump and Pope Francis in a fancy down jacket.

A fake photo of Pope Francis generated by Midjourney.

The fake about Donald Trump's arrest. The photo was circulated on social media. — The fake about Donald Trump’s arrest. The photo was circulated on social media.

In addition to Midjourney, there are many other services for generating images, such as Stable Diffusion, Craiyon, and Starryai. These neural networks create images based on keywords, so-called «prompts»⁶. If they are not used correctly, the AI may misunderstand the user’s request and generate something hard to recognize.

Neural networks are also capable of creating logos. The principle of these services is much simpler than the previous ones: just enter the name of your brand, choose some colors and icons you like and you’re done. Here are a few examples generated by Brandmark.io and Looka:

The logos are generated based on the name of the author of the article, the theme "University" and a few pastel colors. — The logos are generated based on the name of the author of the article, the theme “University” and a few pastel colors.

And the neural networks at Colorize.cc and MyHeritage.com can improve the quality of a photo or even color an old black and white one:

Photo from the personal archive of the author of the article.

Write a text

ChatGPT is probably the most famous chatbot that can write even a diploma. It is based on the GPT-3.5 language model and is used to generate texts that look like their author is a human.

Writing texts with neural networks has its own peculiarities: they cannot simply repeat existing phrases. AI generates new texts based on statistical parameters and patterns found in the data sets on which it has been trained. As a result, texts generated by neural networks can be original, but contain errors and inaccuracies. By the way, this paragraph is almost entirely written with ChatGPT: I only had to correct some grammar and speech errors.

The mechanics of interaction with the chatbot is based on requests and responses. It is desirable to have different topics in different chats.

Some neural networks, such as Rytr, do not work like chatbots, but use a clear user-defined terms of reference. You need to select “tone of speech”, language, “content format” and enter keywords on the site. After specifying the settings, the artificial intelligence will generate a sample text, which it will offer to complete for yourself.

Artificial Intelligence detectors

Due to the emergence of services that can write the text for a person, there was also a need to check the work for anti-plagiarism. The problem is that using ordinary software it is impossible to determine, for example, if a student wrote an essay by himself or herself or if he or she used AI. Moreover, The New York Times pointed out that even writers and teachers cannot distinguish ChatGPT writing samples from student papers, so schools in New York banned the use of OpenAI’s AI.

The result of checking the text generated by ChatGPT on the Writer site.

For this purpose, special services have been developed that also work with neural networks. Some of them are AI Content Detector from Writer and AI Text Classifier from the already mentioned OpenAI. So far, however, AI detectors have low accuracy in determining neural networks work. AI Text Classifier, for example, successfully identified only 26% of AI texts. In addition, this detector will fail if the text is even slightly edited, written by children or not in English, and contains less than a thousand characters.

Despite minor advances in this area, services that mask the work of neural networks are already being developed in parallel. This is how Stealthwriter AI handled rewriting ChatGPT’s response to my question about whether he would be offended if the author did not mention him in the article (the text is given in unmodified form):

Since I am only an Al artificial intelligence modeled brain, there are no sentiments or affections inside me that can cause offense. To assist in any way possible and offer information is my purpose. The decision of mentioning my support in the article lies entirely with you. That said, recognizing and attributing sources or tools utilized in your work is a common practice for ensuring transparency and integrity.

Original text:

As an Al language model, I do not have feelings or emotions, so I cannot be offended. My purpose is to assist and provide information to the best of my abilities. Whether or not you mention my assistance in your article is entirely up to you. However, it’s always good practice to acknowledge and give credit to the sources or tools that you use in your work for transparency and integrity.

Which version is more like «made by human» is a subjective question.

Artificial Intelligence has indeed reached a new level: neural networks are now able to perform some tasks faster than humans, and sometimes even better. Nevertheless, they still make mistakes, and in some places, they are far from being successful at all. There is no need to be afraid of robots taking over the world. Probably.