LOS ANGELES (Reuters) - Netflix Inc's hefty price increase provoked an unprecedented outpouring of outrage on the Internet, but Wall Street cautiously welcomed the move, sending its shares up nearly 3 percent on Wednesday.
Thousands of subscribers complained on Netflix's official blog with many threatening to cancel subscriptions after the fast-growing video service raised prices by up to 60 percent for users of both its streaming and DVD-mail service.
Many said they would consider options such as Hulu, the Internet video service owned by Comcast Corp NBC Universal, News Corp, Walt Disney Co and Providence Equity Partners, or even Redbox, whose once booming kiosk-rental service had been eclipsed by online, instant Web offerings.
"Who's genius idea is this crap?" said one comment on the Netflix blog, which promised to cancel service. "Your streaming selection sucks and the Red Box is looking better and better these days!"
The higher prices clearly stirred passions among the company's subscribers, but Netflix brushed off the criticism as expected from a vocal minority.
"We knew there would be some people who would be upset," company spokesman Steve Swasey said.
The increase amounts to $6 a month for one DVD at a time plus unlimited streaming.
"To most people, it's a latte or two," he added.
The company expects some cancellations, Swasey said, but he declined to say how many.
Some industry analysts argued the higher prices should make up for cancellations, in part by driving customers toward more profitable Netflix plans.
Subscribers who cancel are likely to be in lower-priced plans, with one DVD at a time, who turn in more DVDs, said Goldman Sachs analyst Ingrid Chung.
"Gross margins should benefit as we believe that the majority of lower-priced (subscribers) were less profitable for Netflix," Chung said in a research note.
Lower-priced subscribers also might be drawn to the streaming service, "which has very incremental margin," wrote Chung, who has a "buy" rating on Netflix shares.
The new prices take effect immediately for new subscribers and in September for current customers.
Netflix's price rise comes as it finds itself writing increasingly large checks for the rights to the movies and TV shows its customers expect to find from its streaming service.
In one such deal, Netflix renewed on Wednesday a multi-year agreement with Comcast Corp's NBC Universal, giving it rights to stream previous season hits such as "The Office" and Parenthood" from NBC and series, including "Keeping Up with the Kardashians" and "Psych", from its cable networks. The financial details were not disclosed.
Netflix said on Tuesday it was raising by 60 percent the monthly price of a plan that lets subscribers watch unlimited movies and video online and get DVDs by mail.
The price for unlimited streaming plus rental of one DVD at a time will run about $16, up from about $10. Subscribing to just streaming, or just one DVD at a time, costs about $8.
One comment on the Netflix blog was more accepting.
"If you can improve your streaming selections it would be a benefit. I now pay the price of both anyway so I don't see a downside for me," wrote a person identified as "Scott."
While customers vented on the Netflix blog and Facebook page, the company's shares rose 2.6 percent to close at $298.73 on Nasdaq.
(Reporting by Lisa Richwine and Paul Thomasch; editing by Andre Grenon)
The About Face Beauty Spa in Royal Oak, Michigan, a quiet suburb north of Detroit, offers a variety of skin and body services, from $10 lip waxing to a $150 “bridal make-up” session.
But while owner Robin Manoogian generally caters to a local clientele, you’ve likely seen her work.
That’s because the Republican National Committee has paid the beauty spa more than $17,000 in recent years to do Chairwoman Ronna McDaniel’s hair and make-up ahead of the powerful Michigander’s many appearances on national television.
The payments to Manoogian’s spa are just a fraction of the more than $72,000 the RNC has paid various beauty professionals since 2017, when McDaniel became chairwoman, according to a Raw Story analysis of federal campaign finance data. They include several in the Washington, D.C., area, where McDaniel also spends significant amounts of time.
Describing McDaniel as “a delight to work with” and possessing "the most beautiful bone structure and sparkling eyes,” Manoogian told Raw Story she routinely meets the RNC chairwoman on-location at Detroit television studios.
“When she's got a live interview, we just keep working. Rain, sleet, snow,” said Manoogian, adding she totes a beauty kit with her for her appointments with McDaniel. “You know, the hit is scheduled for a certain time frame and she's got to be in the chair mic'ed ready with not a hair out of place. In and out. Done and done.”
The RNC’s hair-and-make-up spending comes at a time when the Republican Party is courting blue-collar voters and lambasting President Joe Biden for what conservative leaders assert is an elitist and ineffectual economic policy that’s causing “nothing but pain and misery for American families.”
And it’s the latest example in a storied string of prominent political figures — both Democrats and Republicans — who’ve enjoyed top-shelf pampering while simultaneously wooing the proletariat.
An RNC spokeswoman defended the committee’s hair-and-makeup spending, which it characterized in federal campaign finance filings as “media preparation.”
“These payments were for hair and make-up for TV appearances for GOP voices, and as chairwoman of the RNC, part of the job is to spread our great Republican message on the airwaves,” RNC spokesperson Emma Vaughn told Raw Story. “It is incredibly sexist of Raw Story to attempt to smear women in politics for getting their hair and make-up done for TV appearances, something that has been done by men on both sides of the aisle for decades without criticism.”
But there has been criticism, often from Republicans.
In 2015, prominent Republicans panned then-Democratic presidential candidate Hillary Clinton — perennially on television — for a $600 hair appointment at the posh John Barrett Salon in New York City, which put part of the Bergdorf Goodman department store on lockdown.
Then-GOP presidential frontrunner and Wisconsin Gov. Scott Walker tweeted a list entitled “The Economics of Hillary’s $600 Haircut.” The money spent on Clinton’s coiffure could buy a family “138 pounds of beef” or “buy four years’ supply of eggs,” Walker asserted. Hashtag: “#OutOfTouch.”
The College Republicans tweeted two photos of Clinton, her hair shorter and sleeker in the second image. “Before and After @HillaryClinton's $600 haircut #WeCanDoBetter,” it read.
In another tweet, the College Republicans scoffed: “.@HillaryClinton's $600 haircut: meanwhile college students struggling to pay for books this semester #WeCanDoBetter”
“I don’t care. I’m a person that tells the truth,” Trump said. “You know it was interesting to see but I’ve never seen Hillary with that hairdo so I think that’s an OK thing to say, but it was very different.”
More recently, Trump slammed the Super Bowl halftime performance of Rihanna, a longtime critic of the former president.
"Without her 'Stylist' she'd be NOTHING. Bad everything, and NO TALENT!" Trump wrote on his Truth Social site.
There's a fine line between what the public will consider a legitimate political expense and a personal extravagance.
"If political donors knew their contributions would be funding $16,000+ spa retreats, $1,000+ haircuts, and thousands of dollars for suits, dresses, and makeup, many of these contributors likely wouldn't donate," said Aaron Scherb, senior director of legislative affairs at Common Cause, a government accountability group. "While these expenses likely aren't illegal, these examples show how big money continues to dominate politics and funds lavish lifestyles for certain political figures. We need reforms like those contained in the Freedom to Vote Act to get big money out of politics to help elevate the voices of everyday Americans in politics."
The COVID-19 era proved that TV talking heads, stuck in their living rooms and home offices with studios off-limits, could still do national media hits without the help of professional artists.
One prominent politician — Sen. Jon Tester (D-MT) — boasted in a fundraising message to donors about his cut-rate approach to grooming.
“Just like my $12 flattop haircut from my local barbershop back home and my collection of dirt-stained t-shirts, my background is a big part of the reason I remain grounded and focused amid the partisan politics and nonsense happening in our government,” Tester said.
Nevertheless, politicians of all stripes will sometimes use donors’ campaign cash — often a little, occasionally a lot — to put on their best face.
Rep. Pete Aguilar (D-CA) paid a makeup artist $300 in August 2022. When Secretary of the Interior Deb Haaland represented New Mexico in the U.S. House, she once spent $275 on a makeup artist.
And when Carla Sands, who served as an ambassador to Denmark during the Trump administration, ran for U.S. Senate in Pennsylvania in 2022, she labeled her $845 makeup artist as "media prep.”
There are others: Rep. Emilia Sykes (D-OH) spent less than $300 on "media prep" at Macy's and Dillards. During her 2014 and 2016 campaigns, Rep. Tulsi Gabbard, a Democrat-turned-independent who now works as a Fox News contributor, spent just under $7,000 in campaign cash for makeup and hair expenses.
Raw Story also examined Rep. Nancy Pelosi's expenses, finding that among her campaign accounts and political PAC, the former Democratic House speaker used campaign money to fund $2,900 worth of makeup and hair expenses between 2014 and 2024.
But according to campaign finance reports, the former speaker didn’t regularly use political or campaign cash to have her makeup and hair done for public appearances. Rather, she paid for it out of her own pocket and not at the donors’ expense.
Pelosi’s appointments continued to make news during the past decade. Fox News, for example, reported on Pelosi having her hair done in San Francisco on Aug. 31, 2020 — during the early months of the COVID-19 pandemic, when trips to the beauty salon or barber shop came with perceived risk.
Campaign finance reports show that during the same month, the RNC paid District Bridal Company of Washington, D.C., $2,496 for hair and makeup services.
In the midst of these hair and makeup expenditures, the Republican National Committee stands apart for the frequency and amount of money it spends for such services, Raw Story’s analysis of federal campaign finance data indicates.
Among the charges the RNC had for hair and makeup includes $750 for a Michigan salon and a “celebrity” makeup artist that appears to work with Fox, who charged $2,546.97.
In the case of one makeup artist, who was paid $1,560 in 2018 and $778 in 2017, the same person was listed on OpenSecrets for "travel expenses," totaling $3,473 in 2017.
The RNC told Raw Story that, by its count, the DNC spent over $47,000 in hair and makeup expenses during the 2021-2022 election cycle.
The DNC refused to comment for this story. But a person familiar with the DNC expenditures told Raw Story the costs are not just for hair and makeup but for a variety of people and purposes.
FEC data indicated the DNC lists hair and makeup expenses using the catch-all term “event production,” which also includes site rentals, stage set-ups, lighting, filming, and event consultants for conventions. It’s all mixed together, making it difficult to suss out the exact amount out of the $167,817 of “event production” for the past decade.
The names of hair and makeup vendors that appear in the DNC’s financial disclosures also for the past year match the names of makeup artists that have posted photos touting their work with first lady Jill Biden during the 2020 campaign for her photoshoot with Vanity Fair.
Another DNC expense during the 2021-2022 years comes from the hair and makeup company Conceptual Beauty.
While they haven’t posted any photos of their work with political leaders in the past two years, they did share pics of Pelosi, tagging the location of the photos as the Capitol Visitor’s Center following Donald Trump’s 2019 State of the Union address.
Many of the DNC's hired hair and makeup artists are proud to publicly promote their clients, whether political or media. But DNC Chairman Jaime Harrison never turned up in the social media images for these hair and makeup artists.
It doesn’t mean he hasn’t utilized any services — but there’s no federal record indicating such expenditures have occurred. The DNC declined to comment on Harrison, as well.
The artist was hired via the communications department during Anthony Scaramucci’s short tenure. Then-White House press secretary Sarah Huckabee Sanders’ makeup changed enough during her time in front of the cameras that comedian Michelle Wolf joked about her “perfect smoky eye” during a White House Correspondents Association dinner.
‘Personal image to maintain’
According to Manoogian, McDaniel has never physically visited her spa in Michigan.
And while McDaniel may rank among Manoogian's most notable clients — the late Queen of Soul Aretha Franklin is another — Manoogian told Raw Story that she has worked for decades doing hair and makeup for television programs and more recently did the makeup for an episode of NBC show “Dateline.”
Manoogian’s spa website explained that she has worked for numerous clients and network television during her nearly 40 years in the business.
Manoogian emphasized that the money she’s made from the RNC came over a six-year period and that she does McDaniel's makeup and hair every time she's appearing on television from Michigan. Most cable news networks have their own hair and makeup staff in New York and Washington, but that might not be the case at the affiliates where the guest, such as McDaniel, appears via satellite.
RNC Chairwoman Ronna McDaniel appears on Fox News in November 2018.
RNC Chairwoman Ronna McDaniel appears on CNN in February 2023.
"I absolutely just go to the studio facility prior to the interview to handle getting her ready, and that's my craft," Manoogian explained. "I mean, with six years together, do the math. When she's in D.C., I know she's got her normal crew but, I know she travels all the time, so she's either coming or going."
Manoogian clarified that she has a "kit" and drives directly to the studio to meet McDaniel each time.
"It's not much per year for how many visits there are," Manoogian said. "And essentially, you have to go where the satellite is to reach the national, live. It's standard."
Manoogian also explained that one of the biggest problems with television is that it takes a three-dimensional world and renders it in two dimensions, which is why people always look like they've gained weight on camera. Light reflecting off the oils on the face also contributes. So, the most important thing a person can do when appearing on camera is to ensure there's no shine, she said.
“As a professional, you have a personal image to maintain, just like movie stars," Manoogian told Raw Story.
Former President Bill Clinton and former U.S. Sen. John Edwards (D-NC)Photos by Gage Skidmore/Wikipedia and Peter Smith/Flickr
In a political era where the image is often everything, one can trace modern grooming and beauty brouhahas to President Bill Clinton, who once shut down part of Los Angeles International Airport with Air Force One’s engines running so his mononymous Beverly Hills hairstylist, Cristophe, could board the presidential jet and tend to the commander-in-chief’s salt-and-pepper locks.
Democrat John Edwards, a U.S. senator and 2004 and 2008 presidential candidate, drew gasps and pearl-clutching when this “son of a mill worker,” who championed impoverished Americans, used $1,250 worth of donor dollars to bankroll a traveling hairstylist who tended to his Kennedy-like coiffe.
During the 2008 campaign, the RNC spent $150,000 not on hair and makeup but on a wardrobe for vice presidential nominee Sarah Palin and her family, Politico reported at the time. Ahead of the Republican Convention in Minneapolis that year, the committee spent $75,062.63 at Neiman Marcus.
Trump’s White House didn’t use political donors’ money to handle hair and makeup, however.
Taxpayers funded Trump’s White House hiring a full-time artist to work at 1600 Pennsylvania Ave. and handle anyone there who appeared on television.
The RNC’s first financial report for 2023, covering spending in January, indicated more spending with Manoogian’s business, as well as other vendors that provide various hair, makeup and eyelash services — although it’s unclear exactly what services they provided the RNC.
Since the conclusion of the 2022 midterms, the RNC dropped another $3,867 on hair and makeup costs in January 2023. In February 2023, they had another $1,725 payment to the Michigan spa. It’s a total of $5,592 for 2023. The Democratic Party has spent $4,333.25 on "event production" during the same time period.
That put the Republican Party over $90,000 in donor-funded hair and makeup expenditures since McDaniel took over.
The RNC told Raw Story that they don’t intend to change their process of spending donor funds on the chair’s hair and makeup.
Tyranny expert Timothy Snyder, a Yale University professor and author, explained that the contemporary Republican Party has a startling number of characteristics that they're adopting from fascists and authoritarians — and also from the communists they claim to oppose.
Speaking to Ali Velshi on Wednesday, Snyder addressed the recent alarm raised by retired Judge Michael Luttig, claiming that the American democracy is still in peril and there is no end to the threat in sight.
Snyder explained that the interesting thing seen in the 21st Century is that everyone is trying to claim to be a democracy. Russia claims have claimed in the past it's a democracy. Their use of the word is an attempt to erode the understanding of it, he said. It's part of their design.
Looking at Ukraine's success, he explained it's about the cooperation of a unified country intent on fighting a potential oppressor.
"It's the habit of resistance," Snyder said. "It's the habit of cooperation that allows the army to do so well. That's a lesson for other societies. Why did Netanyahu have to pull back in Israel? Because Israelis are finally getting on the streets in large numbers and they are making their voices known as a society. Democracy is about muscle. It's about movement. It's about people taking a stand together. If you wait for the institutions to save you, then it's already too late."
Velshi brought up Judge Luttig again and noted that he's not a "hair on fire" kind of guy. He's a conservative Republican, and he's very concerned about the American democracy at risk. The concern he has, and it's something Snyder shares, is in convincing people that the risk is real.
Velshi cited Donald Trump's claim, for the second time in a month, "I am your retribution." As Velshi explained, "It's the language of autocracy."
"It's also the language of fascism," said Snyder. "Living in a 'Big Lie' is being a fascist. Saying that I have an alternative truth for you, an alternative reality where you can live, saying that politics is all about naming the enemy and taking revenge, that is basically a fascist reality that we're talking about."
He said that those who care about democracy should remember the 20th Century.
"When I look at Florida, I have to say, what I think about is Communism," Snyder said. "The book bans, and the public gatherings, and the singling out of authors, and the denunciations — like it's funny, all of this stuff is supposed to be anti-Communist, but as a historian of Communism, that reminds me of some of the basic things that were wrong about Communism. Those denunciations and book bannings and getting people all rallied up about authors that are supposedly contaminating other people. So, I think we have to be ready to name some names and describe some practices. And we also have to say positively that in a democracy we don't do those things, but we do other things, and those other things are actually better and make for a better sort of life."
Former Rep. David Jolly (R-FL) tore into his former Republican colleagues on MSNBC Wednesday following the horrific mass shooting at Covenant School in Nashville, Tennessee, accusing them of being completely beholden to the gun lobby and its propaganda.
He focused particular on Rep. Thomas Massie (R-KY), who got into a shouting match with Rep. Jamaal Bowman (D-NY) over the issue earlier today.
"[Michigan Congresswoman] Elissa Slotkin was on the program yesterday and she said, the terrain is shifting right now. I can feel it. I'm in a swing state, I'm running statewide," said anchor Chris Hayes. "What do you think?"
"I don't think it's going to shift among Republican politicians," said Jolly. "It could be shifting with voters, who get to hold Republican politicians accountable, and that will be the ultimate test. We have a generation of Republican politicians who basically have been indoctrinated from the time they entered politics, alongside their gun lobby talking points, and I think you're seeing that from Thomas Massie."
Jolly proceeded to debunk many of the claims Massie made in his argument with Bowman.
"The reality is, even if there's truth to the fact there's not been a school shooting in the schools that arm teachers, I would suggest causation, or correlation does not imply causation," Jolly said. "And secondly, inevitably, Chris ... Thomas Massie will be proven wrong. The data point that should inform all of our judgment on gun deaths is that the United States, per capita, for 100,000 people, has a higher density of gun ownership by a rate of 3 to 10 times than other developed countries, and we have 3 to 10 times the gun deaths in the United States, compared to other developed countries. It is the guns, and I think that's what Bowman was making clear."
Watch the segment below or at this link.
David Jolly attacks his former colleagues for being too cowardly to protect children from AR-15s