When Netflix's cheaper ad-supported tier launches next year, subscribers may find themselves unable to access some of the service's titles available on its regular plan. As Deadline notes, Netflix co-CEO and Chief Content Officer Ted Sarandos has admitted during the company's most recent earnings call that the upcoming subscription option will not include all of its licensed content at launch. It will be missing shows and movies from both US and international studios and distributors, unless the company can successfully (and quickly) convince them to change the deal they originally agreed to. 

Netflix is in talks with studios to amend their deals and be able to make their shows available for streaming alongside ads. Based on a previous Wall Street Journal report, Netflix is renegotiating its deals with Warner Bros. (the studio behind You), Universal (the producer of Russian Doll) and Sony Pictures Television (producer of Cobra Kai). The service will reportedly have to renegotiate the terms for some of the older shows it carries, as well, including Breaking Bad. 

Sarandos said during the earnings call:

"Today, the vast majority of what people watch on Netflix, we can include in the ad-supported. There’s some things that don’t and we’re in conversations with the studios on, but if we launched the product today, members in the ad-tier would have a great experience. We will clear some additional content but certainly not all of it but don’t think it’s a material holdback for the business."

In the same call, Netflix also admitted that it lost nearly 1 million subscribers in the second quarter of 2022. It still turned a $1.44 billion net profit and expects to add a net 1 million subscribers in the next quarter, but it's hoping that some of the measures it's taking will help it grow its userbase yet again. The ad-supporter tier it's launching with Microsoft early next year could help Netflix grow in markets where there's strong ad spending. 

The developer behind Destiny is now a part of the Sony universe. Sony Interactive Entertainment officially closed on a $3.6 billion deal today to buy the independent game studio and publisher Bungie, according to tweets from both Bungie and PlayStation Studios. Under the terms of the acquisition, Bungie will still maintain creative control over its operations and independently develop its games. As leaders from bothcompanies have noted since the deal was announced in January, Bungie will be considered an independent subsidiary of Sony and won’t be required to make either current or future games exclusive to PlayStation consoles.

As TechCrunch noted, Sony is hoping Bungie’s expertise with games like Destiny will help it expand its own live service game offerings. The company plans to spend 55 percent of PlayStation’s budget on live service games by 2025, revealed Sony CEO Jim Ryan at a May investor presentation. PlayStation plans on releasing 10 live service games before March 2026, and Sony believes Bungie’s assistance will be crucial in this effort.

Sony this week also closed on a deal to acquire Montreal-based Haven Studios, which is working on a multiplayer title for PlayStation. And Sony is far from finished. The company plans to acquire even more studios over the next few years in a bid to grow its live service and PC offerings, as Ryan has noted in several interviews. And on the Xbox side, Microsoft’s $68.7 billion acquisition of Activision Blizzard is expected to close next summer.

Panasonic announced on Wednesday that it's inked a $4 billion investment deal with the state of Kansas to build and operate the world's largest battery cell production facility. The company has already identified a site near the city of De Soto, at a former ammunition factory.

“As the largest private investment in Kansas history and one of the largest EV battery manufacturing plants of its kind in the country, this project will be transformative for our state’s economy, providing in total 8,000 high-quality jobs that will help more Kansans create better lives for themselves and their children,” Kansas Governor Laura Kelly, a Democrat, said during Wednesday's press conference.

The plant will produce high-capacity cells for Tesla, according to Nikkei Asia. Panasonic already jointly operates the Reno, Nevada Gigafactory with the automaker. Tesla opened a third Gigafactory, in Austin, this past April. This project is expected to produce 4,000 permanent jobs at the factory as well as 16,500 construction jobs.

Despite the global economic shock and supply chain shortages instigated by the COVID-19 pandemic, Tesla saw its vehicle deliveries jump nearly 90 percent between 2020 and 2021. The company had begun developing a proprietary line of batteries in 2019 and has been routinely snapping up exclusive deals with lithium suppliers.

Similarly, GM and Ford have made sizable investments in both battery and EV production facilities, in recent years. GM is spending $7 billion in Michigan alone, part of which is going towards a $2.4 billion battery and EV facility outside Lansing, while Ford has put up a whopping $29 billion towards its electrification and autonomous technology commitments. 

Netflix has found a partner for its upcoming ad-supported tier. On Wednesday, the company announced it plans to work with Microsoft to expand its subscription offering. In a blog post published by Microsoft, the tech giant said it would provide Netflix with technological and sales expertise. 

As recently as last month, The Wall Street Journal suggested Google and Comcast were among the leading candidates to help Netflix build out an ad-supported tier. On Wednesday, Netflix said it selected Microsoft for the tech giant's "proven ability" to support its customers. "Microsoft offered the flexibility to innovate over time on both the technology and sales side, as well as strong privacy protections for our members," said Netflix Chief Operating Officer Greg Peters. Not mentioned is the fact that Microsoft doesn't operate a competing streaming service. 

Netflix co-CEO Reed Hasting first revealed the company was exploring cheaper plans this past April. The admission came after Netflix announced that it had lost 200,000 subscribers in the first quarter of 2022. At the time, Hastings said the company planned to finalize the details of its plans "over the next year or two." Netflix is scheduled to announce its second-quarter earnings on Tuesday. According to CNBC, the company recently warned Wall Street it may have lost as many as two million subscribers in the past three months. 

Peloton will no longer build its own connected fitness products, as it's moving entirely to third-party manufacturing. It said in a statement that it's "exiting all owned-manufacturing operations" to simplify its supply chain and cut costs. "We believe that this along with other initiatives will enable us to continue reducing the cash burden on the business and increase our flexibility," Peloton CEO Barry McCarthy said. "Partnering with market-leading third party suppliers, Peloton will be able to focus on what we do best — using technology and content to help our 7 million members become the best versions of themselves."

The company is expanding its long-existing partnership with Taiwanese manufacturer Rexon, which will be the primary builder of Bike and Tread devices. Peloton says it will suspend operations at Tonic Fitness for the rest of the year. It bought that company in 2019 to bring some manufacturing in house.

Things haven't exactly been going swimmingly over at Peloton. In January, then-CEO John Foley said the company was "resetting our production levels for sustainable growth" following reports it was putting all production on hold. It was suggested that Peloton had thousands of products sitting in warehouses and on cargo ships amid decreased demand. The following month, Peloton brought in McCarthy as CEO and laid off around 2,800 corporate employees, equivalent to 20 percent of the total workforce.

After the pandemic-driven boom, when many people were buying Peloton gear to help them work out at home, business took a significant hit. Peloton posted a net loss of $757.1 million for the first three months of 2022 on revenue of $964 million, compared with revenue of $1.262 billion and a loss of $8.6 million a year earlier. It attributed the diminishing returns to a significant increase in operating expenses (which represented 95.4 percent of total revenue for the quarter) and having to manage its stockpile of products, which it believed it would sell eventually.

In April, Peloton cut the prices of some products to lower the barrier to entry while announcing plans to increase subscription fees in the US and Canada for the first time. The company now has a rental program for the original Peloton Bike. It costs $89 per month and an All-Access Membership is included. There's a $150 delivery fee, though you can cancel at any time and there's free pick-up. Customers have the option to buy the device outright after 12 months. Meanwhile, in May, Peloton teased its first rowing machine.

Electric truck maker Rivian is reportedly planning to lay off hundreds of workers. While the company hasn't made a firm decision on mass job cuts, according to Bloomberg, it may shed around five percent of the workforce. With a headcount of more than 14,000, that equates to around 700 employees. Layoffs may be announced in the coming weeks, the report suggests. Rivian declined to comment to Engadget.

The job cuts would primarily be for non-manufacturing positions in areas where Rivian has expanded too quickly. Teams with duplicate functions are said to be among those the company has targeted. The total number of employees at Rivian has more or less doubled over the last year as the automaker increased production.

The automotive industry has been hit hard by supply chain issues and the economic climate, and it seems Rivian is no exception. The company still expects to build 25,000 EVs this year despite production difficulties. Rivian eventually aims to manufacture 600,000 vehicles per year between its existing plant in Normal, Illinois and a second planned factory in Georgia that's expected to open in 2024.

The company has a backlog of tens of thousands of EV orders. It will have to juggle those with the 100,000 delivery vehicles it will build for Amazon by the end of the decade. As such, bolstering production while streamlining operations elsewhere seems a logical move.

The news follows a recent report noting that Rivian hired dozens of former Tesla employees in recent months, according to LinkedIn data. It was reported in late June that Tesla cut around 200 people from its Autopilot team after CEO Elon Musk announced plans to reduce the company's salaried workforce by 10 percent. Musk told employees earlier that month he had a “super bad feeling” about the state of the economy and for them to expect layoffs.

With supply chains still in disarray and the war in Ukraine wreaking havoc on EV battery component commodity prices, many forward-thinking automakers are scrambling to secure not only stocks of the valuable metals like cobalt, lithium and nickel that go into EV batteries, but also the means of of building the batteries themselves. On Thursday, Volkswagen Group held a groundbreaking at the site of its forthcoming EV battery cell plant in Salzgitter Germany and announced the formation of a new company, PowerCo, which will be responsible for handling the VW Group's burgeoning battery business. 

"Today is a good day for the automotive industry in Germany and Europe," German Chancellor Olaf Scholz said during the event. "Volkswagen is showing how the future of sustainable, climate-compatible mobility could look. Together, we are laying the foundation for shaping this future to a significant extent in Salzgitter."

PowerCo will handle the Group's global battery activities, from producing the batteries themselves to conducting R&D on new battery technologies to "products such as major storage systems for the energy grid," per the announcement. Once the Salzgitter plant is operational, PowerCo will begin work on a second factory in Valencia, Spain with an eye on three further cell factories in Europe and potentially North America as well. Each of the European factories will reportedly operate using 100 percent renewable energy. In all, PowerCo aims to open a total of six battery factories in Europe producing a total of 240 GWh capacity every year (~6 million electric vehicles worth).

Stefan Warter

Operations across the various production facilities will be highly standardized. Everything from "equipment, buildings and infrastructure" to "products, processes and IT" will conform so that the entire production process can be more readily adapted to future "product and production innovations," per the release.

(c) Sebastian Dorbrietz

The Salzgitter plant is expected to create 5,000 new jobs when it begins operations in 2025 with an annual capacity of 40 GWh (~500,000 electric vehicles worth). Some 20,000 positions are will need to be filled once the other European factories open, Daniela Cavallo, Chairwoman of the General and Group Works Council of Volkswagen AG, said. 

Microsoft will have to satisfy more than just the Federal Trade Commission to complete its $68.7 billion deal to buy Activision Blizzard. On Wednesday, the United Kingdom’s Competition and Markets Authority announced it would investigate the proposed merger. The watchdog says it seeks to determine whether the agreement would create a “substantial lessening of competition” within the UK. The CMA could announce a decision on whether it will move forward with a probe as early as September 1st. With today’s announcement, the public has until July 20th to submit comment.

Microsoft was most likely ready for the deal to be intensely scrutinized, and in recent months it has made moves seemingly designed to placate regulators. In June, for instance, the company announced a labor neutrality agreement with the Communications Workers of America, the organization that seeks to represent the quality assurance workers who recently voted to unionize at Activision’s Raven Software studio. Just how effective such gestures will be is hard to say. At the start of the year, NVIDIA abandoned its proposed $40 billion deal to buy chip designer ARM after the FTC sued to block the purchase. At the time, the agency called the outcome “signifcant” because it represented “the first abandonment of a litigated vertical merger in many years."

Tesla produced 258,580 vehicles in the second quarter of 2022, the automaker announced on Saturday. While that’s a 25 percent year-on-year increase from the number of cars it made during Q2 2021, it’s also fewer vehicles than the company produced at the start of the year amid an “exceptionally difficult quarter.” In the first three months of 2022, the company manufactured 305,407 cars, meaning production volume declined by 15 percent from the previous quarter.

As a result, Tesla also delivered fewer vehicles in the past three months than it did at the start of the year. Deliveries declined by nearly 18 percent between Q1 and Q2 2022 to 254,695. The setback marks the first time in two years that Tesla’s deliveries have fall quarter over quarter.

The company saw production slowed by ongoing component shortages that affected the entire auto industry. Tesla was also forced to stop work at its critical Shanghai Gigafactory multiple times in March due to the strict COVID-19 lockdowns that hit China’s most populous city.

If there’s a silver lining for Tesla, it’s that the company would appear well-positioned to bounce back next quarter. According to Tesla investor Sawyer Merritt, the company said it achieved its highest monthly vehicle production volume in June. We’ll know more about Tesla’s outlook when the company shares its full Q2 2022 results on July 20th.

Bobby Kotick will get to keep his seat on Activision Blizzard's board of directors despite catching flak over the alleged role he played in creating the company's toxic workplace culture. At the video game developers' annual meeting of stockholders, investors voted on several proposals, as well as who gets to be on the company's board of directors over the next year. A total of 533,703,580 shareholders have voted to keep Kotick on the board, while on 62,597,199 have voted against it. As GameInformer notes, that means he gets to keep his seat until the next meeting in 2023. 

Activision Blizzard employees walked out of their jobs last year and called for Kotick's resignation after The Wall Street Journal reported that the CEO knew about the worst instances of abuse in the company and even protected the employees accused of harassment. If you'll recall, California's Department of Fair Employment and Housing sued the publisher in July 2021 for allegedly fostering a "frat boy" culture. The California agency investigated the company over the course of two years and found that women working for Activision Blizzard were paid less than their male counterparts and were subjected to constant sexual harassment. 

More recently, the New York City Employees' Retirement System sued Kotick, calling him unfit to negotiate the company's pending sale to Microsoft due to his "personal responsibility and liability for Activision's broken workplace." NYC's retirement system represents the city's police, teachers and firefighters and owns Activision Blizzard stock. The company named a new chief diversity, equity and inclusion officer in April to help the company have a more inclusive workplace. In response, a group of employees aiming to protect workers from discrimination formed a committee to outline a list of demands for Kotick and the new chief diversity officer. 

While majority of the shareholders have chosen to keep Kotick on the board, they also approved a plan to release an annual public report detailing how Activision handles any sexual harassment and gender discrimination dispute. The report must also detail how the company is preventing these incidents from happening and what it's doing to reduce the length of time it takes to resolve them.