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Netflix stock plunges to 52-week low following mixed earnings report

Netflix stock plunged 9% on Friday morning to $67.74 a share, after the streamer’s second quarter earnings report renewed concerns among investors and analysts about the streamer’s future growth.

The Los Gatos-based company on Thursday narrowed its 2026 forecast to $51 billion to $51.4 billion from $50.7 billion to $51.7 billion, causing equity analysts to cut their estimates. The stock reached a new 52-week low on Friday and is down 49% from a year ago.

“This outlook likely reinforces investor concerns,” wrote analysts from Guggenheim Securities in a research note on Friday, which has a “buy” rating on the stock.

Netflix did not immediately respond to a request for comment on its declining stock price.

Investors have been skittish about the amount of time people spend on the streaming platform. Netflix’s share of TV viewing time in the U.S. has steadily declined in recent months as YouTube has gained market share, according to Nielsen data.

Investors are concerned that if people spend less time watching Netflix, it could cause people to cancel their subscriptions and make it more challenging for Netflix to raise prices in markets like the U.S.

Netflix said engagement is healthy on its platform and its programs continue to draw large audiences with popular shows like crime drama series “I Will Find You.”

Netflix said subscribers watched more than 97 billion hours on the streaming service in the first half of the year, up 2% from a year ago.

“We are increasingly concerned that younger generations are less interested in long form content as their time migrates to ‘free’ social media platforms,” wrote Jeffrey Wlodarczak, CEO of Pivotal Research Group in a report on Friday, who has a hold recommendation on Netflix stock. “We believe this will result in slower subscriber growth and attempts by the company to offset this via more aggressive price increases and investment in content.”

Netflix executives in a Thursday earnings presentation emphasized that measuring engagement at the company goes beyond hours spent watching the streaming service.

“There is not a linear relationship between view hours and revenue and profit because all hours are not created equal,” said Greg Peters, Netflix co-CEO on an earnings presentation on Thursday. “All hours don’t provide the same kind of value to the business.”

The streamer said it plans to allocate just over 5% of its content spend on live programming this year. Live content has been a key driver for subscriptions, accounting for six of the top 10 new member sign-up days over the last five years, the company said, even though it makes up roughly 1% of overall watch time this year.

The company is also diversifying the content it offers on its platform, adding live sports games and video podcasts, in addition its large library of TV shows and movies.

Netflix revenue rose 13% to $12.6 billion in the second quarter. Net income was $3.4 billion, up 9% from a year ago.

The company said its advertising business is on track to reach $3 billion in revenue this year, double the amount in 2025.

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Netflix reports higher profits as investors worry about growth

Netflix on Thursday reported higher revenues and profit in the second quarter as it sought to assure investors about its growth prospects.

The streaming giant reported revenue of $12.6 billion in the second quarter, up 13% from a year ago. Net income during the period rose 9% to $3.4 billion.

Netflix said it expects revenue to grow 12% in the third quarter, but lowered its 2026 revenue forecast to $51 billion from $51.4 billion.

The results were roughly in line with what analysts had predicted and were driven by recent price increase and growth in advertising revenue. The latter is expected to reach $3 billion this year, the company said.

In a presentation with analysts, Netflix executives touted global expansion plans.

“We’re entertaining an audience approaching a billion people with still lots of room to grow into our addressable market on every measure,” said Spencer Neumann, Netflix’s chief financial officer, in the earnings presentation. “We believe we’ve got lots and lots of runway for solid growth ahead of us.”

Those comments appeared intended to assuage investors who’ve grown concerned that people could be spending less time on the streaming service as rivals like YouTube gain market share.

Netflix’s share of TV viewing time in the U.S. has steadily declined in recent months as rivals have gained market share, according to Nielsen data.

The streamer represented 7.8% of all TV viewing in the U.S. in April — the lowest percentage since May 2025. It was 7.5% in April 2025, Nielsen said.

By comparison, YouTube has seen its share of the streaming audience grow. YouTube’s TV viewing share in April rose to 13.4%, up from 12.4% a year earlier, Nielsen said.

Some investors fear that if viewership is down, subscribers could cancel the service, which would negatively affect the platform’s growing advertising business. It could also undercut Netflix’s ability to raise prices in the U.S. and other countries.

Those worries have caused Netflix’s stock price to plummet 41% in the last year. The stock closed on Thursday at $74.35 a share, up 1%. In after hours trading, the stock fell 8%.

“The engagement elephant continues to rear its head and investors are on edge that an earlier price hike in a seasonally tough period and lighter content slate could have driven more churn than usual,” wrote Morgan Stanley Research analysts in a research note.

On Thursday, Netflix said in a letter to shareholders it has a sophisticated understanding of its consumers and “we know not all hours are equal” and that engagement on its platform is “healthy.”

“The entertainment industry remains dynamic and competitive,” Netflix told shareholders. “We aim to stay ahead by executing against our three areas of focus: delivering more entertainment value, leveraging technology to improve every aspect of our service, and improving monetization.”

The Los Gatos-based company said it plans to allocate more than 5% of its content spend on live programming this year. Live content has been a key driver for subscriptions, accounting for six of the top 10 new member sign-up days over the last five years, the company said.

In the first half of 2026, Netflix said members watched more than 97 billion hours, up 2% from a year ago. Among the most popular shows: the crime thriller “I Will Find You,” which had 87 million views; and the romantic comedy film “Voicemails for Isabelle,” which garnered 71 million views.

Netflix has been adding new types of content to its platform, including video podcasts to help increase engagement with subscribers during the day.

As part of the diversification efforts, the platform has expanded its portfolio of live programming over the years, including adding NFL games and streaming Major League Baseball’s opening day game.

In 2022, Netflix had also faced investor pressure when it reported declining subscribers for the first time in more than a decade. That pushed the company to delve into other areas including advertising, gaming and cracking down on password sharing.

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Telemundo scores goal with ‘El Señor de los Cielos’ marketing plan

This World Cup has made unlikely international stars out of a plucky Cape Verde squad, further catapulted the status of gargantuan Norwegian striker Erling Haaland and firmly planted Lionel Messi as the greatest player of his generation.

But the players on the pitch haven’t been the only ones catching the eyes of soccer viewers.

Another legend among legends has also cemented his legacy during this run: Aurelio Casillas — the fictional drug kingpin and protagonist at the heart of the long-running Telemundo series “El Señor de los Cielos.”

The 10th season of the program finds Casillas reemerging to recover his narcotics empire after disappearing from his family’s radar. Familial drama ensues as betrayal runs rampant and Casillas embarks on a vengeful crusade against his enemies to regain and avenge the death of his love interest.

The image of Casillas, portrayed by veteran Mexican actor Rafael Amaya, has been plastered all across Telemundo’s World Cup coverage.

In the ads leading into games, Casillas is there. During most commercial rejoins, hosts spotlight the “El Señor de los Cielos” final season‘s Tuesday premiere.

The promotion has gone beyond what most U.S. audiences might be accustomed to as the network has cleverly implemented in-game ad reads that seem to flow freely into match coverage.

If Haaland coordinates a strike that helps Norway regain power in the game, a Telemundo game announcer might point out that decorated drug trafficker Casillas has also been known to schedule timely strikes to help him regain power in the dangerous world of narco warfare.

The incessant and cheeky ad reads served as more than just a gimmick as social media users have taken note of Telemundo’s marketing strategy. Many have joked about capitulating to the network’s advertising and giving the show a try. Others have humorously pondered about the contents of the program, while some have defiantly proclaimed that they will never fall for the series’ propaganda.

Hate it or love it, people can’t stop talking about it.

During halftime of Friday’s high-octane Argentina-Cape Verde Round of 32 match, Telemundo sportscaster Adriana Monsalve nodded to the online chatter the show has generated.

“We’ve read your messages on social media,” Monsalve said. “Between those who have said they’ve been convinced and those who admitted that they will be watching ‘El Señor de los Cielos,’ all we have to say is thank you. We await you all this Tuesday at 9 p.m./8 p.m. Central on Telemundo and Peacock.”

This type of over-the-top promotion model has long been used by the network as a way to convince advertisers that running commercials on its airways is worthwhile, noted University of Oregon advertising professor Christopher Chávez.

“They’ve really had to scrap it out over the years and so their product placement has always been overt, whereas in English-language media, there’s at least some attempt to make it creative or artistic,” Chávez, who also serves as the director of his school’s Center for Latina/o and Latin American Studies, told The Times. “There’s just this history of announcers and creatives really just going all in on marketing and almost not disciplining themselves, and because you have this global platform, people are just taking notice and they’re having fun with it.”

Telemundo’s executive vice president of marketing and creative strategy, Claudia Chagui, told The Times that the company had a game plan for how to approach the moment for “El Señor de los Cielos.”

“We had a very clear strategy going into the World Cup,” Chagui said. “We knew what we wanted to do in terms of how to protect our core fans and how to attract English-leaning Hispanics and maybe even general market fans to come and watch it in Spanish and all of that happened. We knew that this launchpad for ‘El Señor’ was going to be the strongest platform we could have.”

Chávez remarked that the Telemundo likely put a lot of stock in engaging Latinos online in the hopes that they would have fun with the marketing rollout.

“[Telemundo] knows that Latinos are younger and tend to be more proficient users of social media and more likely to share content,” Chávez said. “They’re very aware of that kind of market research, so whatever they put out there, hopefully it’s going to be meme-able or it’s going to be shareable. I think they’re pretty much banking on that.”

Chagui said that while much of the viral online chatter is beyond the control of the network, Telemundo’s social team has been locked in to the conversations regarding the show.

“We have our ‘El Señor’ account and even our Aurelio account — who is commenting on some of these conversations — and we’re making sure that our community feels like they’re being heard,” Chagui noted. “There is a real fan community around this IP and we take that very seriously. We want to take care of our fans.”

The show has been able to have such reach this World Cup cycle because more U.S. viewers are opting to tune in to Telemundo’s coverage than ever before.

In a recent social media post, Telemundo said that nearly half of all World Cup viewers stateside are watching its coverage.

NPR reported that 20% of Telemundo’s soccer audience speaks English as their primary language. Telemundo Deportes leadership told the outlet that the network’s telecast numbers have increased by 122% since the 2022 World Cup in Qatar.

“It’s so much better when we’re watching it on Telemundo, because the announcers are not simply announcing the game, they’re engaging with the audiences themselves,” said Mari Castañeda, University of Massachusetts Amherst’s Commonwealth Honors College dean. “They’re really leaning into a more Latino aesthetic that is much more loose, open, joyful, kind of like a party atmosphere that changes the vibe and makes it become more celebratory, which it should be. The World Cup is meant to bring people together and it really seems to be doing that.”

That level of involvement from the commentators was something that Telemundo’s marketing team made sure to instill in its talent pool, Chagui noted.

“We work with our sports team and say, ‘These are the things that are top priorities for us from a promotional perspective,’ and our team creates all those mentions for those commentators and we work hand-in-hand with the sports team to make sure that there’s time within the games for them to be able to make those mentions,” she said.

“We tweak that messaging along the way to make sure that it doesn’t become too repetitive, that people don’t get tired of it. And now when the season starts, you’ll see that those mentions are going to be even more organic and will be more related to what’s happening on the show at the time.”

An unexpected added element that fell into Telemundo’s lap was the dream run of Mexico’s national team in the tournament.

“We prayed for that, but it’s been tremendous,” Chagui said. “[The Round of 32 game against Ecuador] had over 17 million viewers, so talk about a dream promotional platform. We really couldn’t ask for more.”

Chávez saw this current cultural moment as a great time for “El Señor de los Cielos” to potentially add a slew of new viewers, especially among English-first audiences.

“One of the things that streaming platforms like Netflix has done is that you’re starting to now see preferences change,” he said. “American audiences are starting to consume Korean dramas, for example, or Spanish-language dramas … [these] platforms have changed people’s comfort levels with consuming content that is not necessarily in English.”

Chagui also credited Telemundo’s streaming home, Peacock, as an important driver of popularity for “El Señor de los Cielos.”

“Now everybody watches content in any language, so I think the partnership with Peacock has been tremendous, because we know a lot of consumers don’t watch linear television anymore, and so if you’re not available on the streaming platforms, then you already hit a brick wall … we have to be available where our audiences are consuming content,” Chagui said.

If you’re one of the many people intrigued by the series, but find the idea of doing nine seasons of catch-up viewing daunting — there’s no need to fear, Telemundo has got you covered.

Seizing on the show’s newfound increase in popularity, the network created a special episode of “El Señor de los Cielos” that recaps all nine seasons of the series in under two hours.

“We needed a catch-up strategy because core fans are going to want to catch up before the premiere of the new season, but we’re going to bring in all these new eyeballs with the World Cup, and so we had to have something that is easy for them to understand what the series is about so they can hit the ground running,” Chagui said. “That’s where we had this idea to do this 90-minute recap of all nine seasons and so since we launched that on Peacock and the consumption has been off the charts.”

But the appeal of the “El Señor de los Cielos,” which began airing back in 2013 and is inspired by the real-life escapades of Mexican drug lord Amado Carrillo Fuentes, goes beyond just the viral marketing.

“I think for a lot of the folks that were not watching it, but that now are interested and fascinated by the show, [the appeal] is that it’s based loosely on a true story,” Castañeda said. “That’s one of the things that in talking to some of the elders in the community is what connects them to the story itself, it feels like it’s something relevant and contemporary because it’s based on the potential of a true story that’s taking place.”

Castañeda added that the program’s high production value and explosive action scenes make “El Señor de los Cielos” seem like “a fun show to watch.”

Amaya’s turn as the sinister yet family-focused Aurelio Casillas has drawn comparisons to James Gandolfini’s portrayal of mob boss Tony Soprano — a distinction the actor dubbed an “honor” as “The Sopranos” is one of his favorite series.

In a conversation with The Times, Amaya embodied the corporate synergy that has piqued interest in his show.

“Our World Cup are TV series and I think that we’ve scored a bunch of goals during the decade that we’ve been telling a story that always been buzz-worthy and that has passed from generation to generation,” Amaya said. “All that is thanks to the viewers and to the characters who have evolved and remained relevant.”

In addition to the plethora of ads, the “El Señor de los Cielos” lead actor contributed to Telemundo’s World Cup coverage through a special program titled “Diarios de Fútbol con Rafael Amaya.” The show follows Amaya around L.A. as he speaks with soccer legends about the transformative power of the sport.

When asked what new viewers of the show should expect, Amaya kept it simple.

“They’re obviously going to see a series filled with adrenaline, betrayal, unexpected turns,” Amaya said. “In this 10th season there are a lot of changes, and I think it’s the best season yet.”

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CNN sues Perplexity, alleging unlawful distribution of copyrighted content | Media News

Perplexity unlawfully copied thousands of CNN stories, videos and images to power its products, CNN said in its lawsuit.

United States news channel CNN has filed a lawsuit against Perplexity in New York federal court, alleging the AI search engine provider is unlawfully distributing its copyrighted content, marking the latest legal tussle between the AI firm and a news publisher.

The complaint, filed on Thursday, said that Perplexity unlawfully copied thousands of CNN stories, videos and images to power its products and distribute “identical or substantially similar” competing content.

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“You can’t copyright facts,” Perplexity spokesperson Jesse Dwyer said in response to the lawsuit.

CNN is asking for an unspecified amount of monetary damages and a court order blocking Perplexity from violating its intellectual property rights.

“CNN’s lawsuit stands for the proposition that Perplexity, a company valued at tens of billions of dollars, should not be able to steal from entities that create the original content Perplexity exploits,” the Warner Bros-owned news company said in a statement.

“By exploiting CNN’s reporting in this manner, Perplexity violates the protections afforded by copyright law and undermines the economic incentives that make original newsgathering possible,” CNN said in the complaint.

Since the launch of OpenAI’s ChatGPT in 2022, news publishers and writers have worried about their content being repurposed to appear in the results of a chatbot query, triggering battles over copyright, compensation and ownership.

CNN’s lawsuit is one of dozens of high-stakes US cases brought by copyright owners, including news outlets, authors and publishers, against tech companies over alleged misuse of their work to train large language models. Anthropic was the first AI company to settle one of these cases last year, agreeing to pay $1.5bn to resolve a class action lawsuit from a group of authors.

The CNN suit is the latest in a series of legal challenges brought against Perplexity, which uses AI to scour websites and answer users’ queries, alleging the company has infringed copyrights and unlawfully scraped data to train its technology.

Perplexity is also facing lawsuits from The New York Times, Reddit and Dow Jones, among others.

Several news firms have now signed licensing deals and partnerships with Big Tech and generative AI companies to ensure that their models have access to verified sources of news, while also compensating publishers and linking back to original articles.

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As influencers rise in politics, some call for tighter regulations on payments

In the 2024 election, hundreds of social media influencers were credentialed for the first time to attend the Democratic and Republican conventions. They have been invited to holiday parties in the Pennsylvania governor’s mansion, to political rallies in Texas and to events at the White House by both the Biden and Trump administrations.

The role of influencers is surging as candidates and groups across the political spectrum see their social media feeds and personas as a pathway to younger audiences and harder-to-reach groups of voters.

“You have that sense of authenticity, like a friend is talking to you,” said Emma Briant, a professor at Notre Dame University’s Lucy Family Institute for Data & Society who studies propaganda.

That’s exactly what campaigns are hoping to harness when they partner with influencers, she said.

But the nature of that partnership has come into question in California’s hotly contested gubernatorial race after it emerged that a number of content creators — some with millions of followers, others with only a handful — had taken payments from the campaign of Democratic candidate Tom Steyer and not disclosed that they were paid to create those posts.

Some popular content creators have felt the need to explain themselves to their audience. Others have questioned how common such under-the-table payments might be, since there are no disclosure requirements for paid content at the federal level and few jurisdictions have any rules mandating it.

Some campaign finance advocates are concerned that voters could increasingly be influenced by social media posts that they don’t know are sponsored.

“The problem is that it doesn’t look like an ad,” said Saurav Ghosh, a former enforcement attorney at the Federal Election Commission. “It ends up really getting people at a place where they’re not skeptical and not able to tell the difference between what’s voluntary and where the influencer is acting as a paid spokesperson.”

Ghosh is now the director of campaign finance reform at the nonprofit Campaign Legal Center, which has filed a petition asking the FEC to require disclaimers on paid content created by influencers.

Roughly 1 in 5 Americans said they regularly got news from social media influencers in 2024, according to the Pew Research Center, and that number was nearly double for younger adults between the ages of 18 and 29.

Working with social media creators can be an easy way for candidates to try to boost their image, particularly with a younger audience.

“If they don’t have big personalities, maybe partnering with some influencers who seem cool and fun can make you seem cool and fun also through association,” said Link Lauren, a political influencer and podcaster who served as a communications advisor for Robert F. Kennedy Jr.’s presidential campaign in 2024.

California is one of the few places that requires disclosure of sponsored social media posts, but the 2023 law that created those rules hadn’t gotten much of a workout before the issue was raised in this contest through a series of dueling complaints with California’s Fair Political Practices Commission. The commission has yet to weigh in on the various accusations.

Under the law, influencers are required to provide disclosure that a post was sponsored and say who paid for it. Political groups are required to notify paid creators of the requirement.

Even if the commission finds that violations have occurred, the penalties are not especially harsh.

Violation of the law carries no civil, criminal or administrative penalties. The FPPC can take alleged violators to court and ask a judge to force compliance. And violations can be penalized with a fine of up to $5,000 per instance.

Influencers reporting influencers

In the gubernatorial race, the issue of compliance was raised, naturally, by a pair of influencers.

Beatrice Gomberg has built up a following of more than 180,000 followers on TikTok, where she posts under the handle antiplasticlady. Her side gig of creating nonplastic children’s cups and lunch boxes became her main gig after she lost her human resources job at Macy’s during the COVID-19 pandemic.

“I started doing social media because I didn’t want to hire a marketing company,” Gomberg said.

Gomberg’s posts were initially largely focused on research related to plastic, but have become increasingly political over time. When campaigns put out the call for influencers to meet with candidates, Gomberg answered.

She interviewed Katie Porter, she met with Xavier Becerra. And it was at a Becerra event in April when she met Kaitlyn Hennessy, another influencer focused on politics.

They found that the world of online influencers can be isolating. “We stare in front of our phones,” Hennessy said. “You don’t want to see our screen time.”

As they scrolled through social media posts about the governor’s race, they found a cause to unite them.

They kept seeing videos posted by social media accounts espousing similar messages in support of Tom Steyer. Hennessy wondered at first if they were actually created by artificial intelligence.

They found that the posts seemed to be created by a network of women who, in some cases, had created several different profiles to promote a variety of products.

They pored over Steyer’s campaign disclosures and saw that the campaign listed payments to several prominent influencers — including one with the handle Zay Dante, with 1.8 million followers on TikTok — who had not disclosed creating paid content for the campaign.

The pair filed a complaint laying out their allegations, which the Steyer campaign has called “baseless.”

In the wake of their complaint, Steyer defended his campaign’s use of paid influencers, writing on Substack that his campaign believed content creators should be paid for their work and that the campaign had been transparent about disclosing those payments.

In a separate post, influencer Carlos Eduardo Espina said he had been paid $400,000 for work he has done for the Steyer campaign. Espina, who has more than 14 million followers on TikTok, is an advisor to the campaign, which was publicly announced.

“You will never see anything on my channels that I don’t believe in, or that I think goes against the best interest of my community. No one buys my opinion. But I also think it’s fair to be compensated for my work,” he wrote on Substack.

Not everyone is ready to accept payment for posts.

Lauren, the influencer who advised Kennedy’s campaign, said that while he doesn’t begrudge other influencers accepting sponsorship, he chooses not to.

“A passive viewer might think you really believe this,” he said. “I have a strong connection with my audience. I really consider them my family.”

Lauren said he favors disclosure requirements.

Briant, the propaganda researcher, said she is concerned about the possibility of foreign actors trying to influence Americans through paid posts.

In 2024, for example, federal prosecutors filed an indictment alleging that Russian state media employees had paid nearly $10 million to a Tennessee company that paid popular right-wing social media influencers to unwittingly produce pro-Russia content.

Briant said she believes that the only way to counteract increased manipulation through social media influencers is to impose harsh penalties when paid content is not disclosed.

“Ultimately, it’s a wild west at the moment if there are no repercussions for not doing it,” she said.

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Malaysia orders TikTok to address ‘defamatory’ content about king | Social Media

Watchdog instructs social media giant to strengthen moderation following circulation of ‘grossly offensive’ content.

Malaysia’s internet watchdog has ordered TikTok to take action against “offensive and defamatory” content about the country’s monarchy.

The Malaysian Communications and Multimedia Commission (MCMC) said on Thursday that it had instructed the video-sharing platform to take “immediate remedial measures” in response to an account purporting to be linked to King Sultan Ibrahim.

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The MCMC said its order requires the social media company to strengthen its moderation policies and provide a “formal explanation” for its failure to block the “grossly offensive, false, menacing and insulting” content, including AI-generated videos and manipulated images.

The regulator said it takes a “serious view” of online platforms being used to disseminate content that is false or “detrimental to public order”, particularly as it relates to the monarchy.

It added that it issued the order after finding TikTok’s response to previous notifications to be “unsatisfactory”.

TikTok, founded by Chinese tech company ByteDance, did not immediately respond to a request for comment.

“MCMC will continue to take firm and proportionate action where necessary to ensure digital platforms operating in Malaysia uphold their responsibilities in maintaining a safe, secure and respectful online environment,” the watchdog said in a statement.

Malaysia, a constitutional monarchy, penalises speech deemed to inspire “hatred or contempt” against the royal family under a sedition law passed in 1948.

The watchdog’s order against TikTok is the latest move by authorities in the Southeast Asian country to regulate social media platforms.

In January, the MCMC briefly blocked access to the AI assistant Grok amid a global backlash over its use to create sexually explicit images of people without their consent.

Malaysia’s government is also currently preparing to enforce legislation passed last year to prohibit social media use by under-16s, following similar moves by countries including Australia, Indonesia and France.

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Influencer files complaint against Steyer campaign, alleging violations

A political influencer has filed a complaint against Tom Steyer’s campaign for governor, saying the committee failed to notify her of disclosure requirements, as required by law, when she was paid to meet with Steyer in March and later produced social media content from the meeting.

What’s more, she said the Steyer campaign falsely accused her of posting paid content in support of Steyer’s chief Democratic rival, Xavier Becerra, and failing to disclose it in a complaint filed by the billionaire’s campaign this week.

Maggie Reed, who regularly posts satirical takes on politics to roughly half a million followers on Instagram and TiKTok under the username mermaidmamamaggie, said she was actually paid by Steyer’s campaign and signed an agreement that barred her from disclosing the payment.

She posted, and later deleted, a video from her meeting with Steyer in March.

“In plain terms: the Committee paid for political content, structured it to look like an ordinary creator’s organic opinion, and used a non-disclosure agreement to keep the public from learning the truth,” says the complaint, filed Thursday with California’s Fair Political Practices Commission.

Steyer’s campaign disclosed in a campaign filing that it had paid the agency that represents Reed $5,000 for digital advertising, but didn’t indicate that the payment was connected to Reed’s meeting with Steyer or her production of content.

The Steyer campaign said that while it did pay to meet with Reed, it left the decision of whether to create content entirely up to her.

Since then, Reed has produced several videos expressing support for Becerra, the former California congressman and U.S. Secretary of Health and Human Services, but she said that she was not paid to produce those videos and that they reflected her genuine support for Becerra’s campaign.

Becerra has been the top Democrat in recent polling in the race, maintaining a narrow edge over Steyer and a firm grip on one of the top two spots in the June 2 primary that would send him to the general election in November.

Reed’s complaint is the latest volley in a back and forth involving the use of paid influencers in the gubernatorial race.

Two influencers who support Becerra — but were not paid by his campaign — filed a complaint last week saying that a number of influencers had created paid content in support of Steyer, but failed to disclose so in their posts.

Steyer’s campaign then filed a complaint earlier this week in which it leveled accusations against Reed and another influencer named Jay Gonzalez, who is now a paid staffer on the Becerra campaign. The complaint alleges that Gonzalez made several pro-Becerra posts after joining the campaign and belatedly amended them to include disclosure that they were sponsored.

The Becerra campaign has maintained that it does not otherwise pay influencers to produce content on its behalf.

Steyer’s complaint included screenshots of an email sent to Reed’s talent agency by a gubernatorial campaign gauging her interest in producing paid content.

While the screenshots produced in Steyer’s complaint did not disclose who had sent the inquiry, Reed said in her complaint that the request had come from a staffer for the gubernatorial campaign of former Los Angeles Mayor and California State Assembly Speaker Antonio Villaraigosa.

Disclosure of paid political content by social media creators is required in California thanks to a law passed in 2023.

Influencers themselves are required to disclose that a post they created was sponsored, but campaigns are required to notify them of the requirement.

Violation of the law doesn’t trigger civil, criminal or administrative penalties, but the FPPC has the right to take violators to court and request that a judge force compliance with the law.

The agreement Reed signed with Steyer’s campaign, which was attached to her complaint, indicated that she needed to follow all applicable state, federal and local laws, but made no specific mention of her requirement to disclose that content she produced was sponsored.

The agreement did specify that Steyer’s campaign might need to disclose the payment.

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In growing fight, Steyer’s campaign says pro-Becerra influencers didn’t disclose pay

In the latest escalation of a fight over the use of paid social media creators, Tom Steyer’s campaign for governor filed a complaint Tuesday accusing influencers who posted content supportive of Xavier Becerra’s campaign of failing to disclose that they had been paid, which is required by California law.

The complaint, filed with California’s Fair Political Practices Commission, accuses Jay Gonzalez of producing at least 14 pro-Becerra posts on Instagram and Facebook in late April and early May, after he was hired by the campaign, and only belatedly editing the posts to acknowledge they had been sponsored by the campaign.

The complaint also said that a social media creator named Maggie Reed, who posts under the username mermaidmamamaggie, created four pro-Becerra posts on Instagram and had previously offered to create paid posts for another gubernatorial campaign, though the complaint doesn’t specify how the campaign knows Reed was paid.

Reed and a talent agency that represents her did not immediately respond to requests for comment.

The Becerra campaign maintained that it has not paid influencers who have created posts in support of the campaign.

“All of the content you see online is entirely and purely organic,” said Becerra spokesman Jonathan Underland.

Becerra and Steyer have been the top two Democratic candidates in recent polling for the governor’s race, with Becerra consistently maintaining a slight edge in those polls.

The complaint by Steyer’s campaign comes after two influencers who support Becerra filed a complaint last week accusing social media creators hired by the Steyer campaign of failing to disclose that they had been paid to produce their posts.

The campaign of the billionaire candidate for governor had previously disclosed payments to some influencers with large audiences, including one creator with the user name zayydante, who has 1.8 million followers on TikTok, and another with the user name littleyeg, who has nearly 350,000 followers on TikTok. The complaint filed last week said that both of these influencers failed to disclose that they had been paid by the campaign to produce content.

The complaint also highlighted several accounts created by user who don’t appear to live in California who created posts promoting Steyer and, in at least one case, posted elsewhere that they had been paid by the campaign.

The influencers who filed the original complaint said they saw the newly filed complaint as an attempt by Steyer’s campaign to deflect criticism.

“All he’s done is attack his opponent instead of taking accountability for violating the law,” said Kaitlyn Hennessy, one of the two influencers who filed the complaint against Steyer’s campaign. Hennessy and the other influencer who filed the complaint both said they have not been paid by the Becerra campaign.

In a post on Substack, Steyer defended his campaign’s use of paid social media influencers and said that it had been transparent about their use.

“Every creator we compensate has been and will be publicly disclosed as required by law,” he wrote.

Under a California law passed in 2023, social media creators who create paid content on behalf of a political campaign are required to disclose in their post that the material was sponsored and who paid for it.

The onus is on creators to provide the disclosure, but campaigns are required to notify influencers they hire of the requirement.

Violation of the rules doesn’t trigger criminal, civil or administrative penalties but the FPPC can take alleged offenders to court and ask a judge to force compliance with the law.

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AI has invaded the L.A. mayor’s race. Some fear it’s just the beginning

The Hollywood sign is ablaze as Spencer Pratt, the reality TV star now running for mayor of Los Angeles, suits up as Batman, enters City Hall and leads the people to overthrow a cabal of corrupt, out-of-touch progressives intent on destroying the city.

Then he is Luke Skywalker. Dressed in a Jedi robe, he swoops through the city on an Imperial speeder bike, as California Gov. Gavin Newsom (Emperor Palpatine) rebukes incumbent Mayor Karen Bass (Darth Vader) for not burning the city down to the ground in her first term.

“Make sure you finish the job in your second,” Newsom tells Bass with a tilt of the head and a smirk.

“The only thing that can stop us is someone telling the truth,” Bass replies. “As long as they don’t have any hope, the city’s ours.”

Pratt’s fan-generated AI election campaign videos have been praised and mocked, but heavily shared. And some see them as a harbinger of how artificial intelligence could reshape political messaging across the country.

His supporters are far from the first to create AI-generated ads. But political experts say it’s remarkable the degree to which they have used new technology to churn out a stream of outlandish, hyper-cinematic memes, creating buzz around his campaign and his message.

Some warn, however, that as the technology becomes more sophisticated, it will become harder for many people to distinguish between AI and real videos.

“When you’re creating content that is not based in reality, and then platforms are amplifying it in order to attract more eyeballs, you are putting a burden on the public for figuring out what is real and what is factual, and what is fake and misleading,” said Mark Jablonowski, the chief executive of DSPolitical, a progressive advertising firm.

Pratt’s campaign did not create the viral AI videos depicting him as a superhero taking on a cast of California Democratic villains. But he has shared the ads crafted by AI filmmaker Charlie Curran, founder of L.A.’s Menace Studio.

Supercharged and Hollywood inspired, the videos represent a brazen new era of fan-generated AI in political campaign advertising. Deploying generative AI tools to clone human voices and images, they bolster a hyperbolic and ultra-conspiratorial political narrative that depicts L.A. under Democratic rule as a hellscape in which Newsom and Bass deliberately conspire to harm the people.

Bass has condemned the ads, describing them as “very scary” and “absolutely 150% fiction.”

“His social media is now taking on a violent turn,” Bass told CNN, citing the Batman ad that depicts Angelenos pelting her with tomatoes.

Some political experts dismiss such fears of AI campaign ads as overblown. Most AI videos shared by political campaigns and their fans, they note, are more comedic than deliberately misleading.

“Spencer Pratt is using AI the way it should be used, which is to sharpen reality,” said Matt Klink, an L.A.-based Republican political consultant. “His whole shtick is that Los Angeles is broken, the insiders have failed, and the political class wants to explain away what voters are seeing with their own eyes.”

“Obviously, you don’t run an AI ad where you have someone saying something that they didn’t say, and you should disclose that they’re generated by AI,” Klink noted. But when it comes to ads that depict Pratt as Batman or Luke Skywalker, he said, “if you don’t know that they’re AI generated, you’re pretty clueless to begin with.”

For as long as political candidates and their supporters have experimented with new technology — from the pamphlets of the 1600s to the memes of the 21st century — they have faced complaints that they mislead the public.

As large language models ushered in a new era of AI, Sen. Richard Blumenthal (D-Conn.) warned in 2024 that “a deluge of deception, disinformation and deepfakes are about to descend on the American public.”

The term “deepfake” was first coined in 2017 by a Reddit user who used open-source face-swapping technology to splice celebrity faces onto porn performers’ bodies. Within months, it entered the mainstream lexicon as a way to describe any AI-generated synthetic media that realistically clones a person’s image or voice.

Blumenthal cited a “chilling example.” In January 2024, Republicans placed robo calls using an AI “deepfake” voice mimicking President Biden to New Hampshire residents to discourage Democrats from voting in the presidential primaries.

New Hampshire authorities said the message violated the state’s voter suppression laws. A month later, the Federal Communications Commission outlawed robocalls that use voices generated by AI. The company that sent the messages agreed to pay a $1-million fine.

But others kept pushing the boundaries of AI — mostly as overt parody or satire, an arena that offers greater 1st Amendment protection.

In July 2024, an AI content creator created a mock campaign ad of Democratic presidential candidate Kamala Harris with a computer-generated voiceover to make it seem she was describing herself as the ultimate “diversity hire” and “deep state puppet.” The post was titled ‘Kamala Harris Campaign Ad PARODY.’

Newsom slammed the post, saying on X, “Manipulating a voice in an ‘ad’ like this one should be illegal.” Two months later, he signed into law a series of bills that clamped down on AI in politics.

But a federal judge blocked one of the new laws that regulated election-related content that is “materially deceptive,” saying it probably violated the 1st Amendment.

No comprehensive federal rules govern the use of AI content in political ads or messaging. According to the National Conference of State Legislatures, 29 states have passed laws restricting the use of deepfakes in political campaigns: Some states, such as Texas and Minnesota, prohibit the use of deepfakes  a certain number of days before an election; the other 27 states require a media disclosure if content contains a deepfake.

Some political advertising experts call for more federal regulation. The state-by-state patchwork of regulations, they argue, makes it very difficult for social media platforms to be compliant.

“At the end of the day, we really need to see platforms being more responsible with the content that they’re sharing,” Jablonowski said. “We need to have clear guidelines and a level playing field across the country, so we’re not in a position where what’s OK in one state is not OK in another.”

Pratt’s embrace of AI is part of a larger 2026 political trend.

In January, Texas Atty. Gen. Ken Paxton released an ad depicting two of his opponents for a Senate seat — Republican Sen. John Cornyn and Democratic Rep. Jasmine Crockett — waltzing and swinging. A few months later, the National Republican Senatorial Committee shared a video that used a manipulated image of James Talarico, the Democratic nominee for the Texas Senate seat, mouthing his own tweets.

But Pratt has been particularly successful in using fan-based AI to help garner attention, pulling in a number of content creators to craft AI videos for his campaign.

One posted a video parody of the 2004 Downfall film, portraying Bass as Hitler. Another created an animated video, geared to a Latino audience, showing Angelenos lining the streets to cheer as Pratt wheels a garbage can piled with trash and the incumbent mayor. The slogan “SPENCER, SACA LA BASSURA” [Spencer, take out the trash] flashes atop the screen.

A recent survey from the American Assn. of Political Consultants shows that AI adoption is growing rapidly among political consultants — and Republicans are more likely to use it than Democrats.

But political observers in L.A. note that leading Democrats in the mayoral race are unlikely to follow Pratt in using AI. Bass, they note, is a more cautious political figure than Pratt, a brash online influencer who relished playing the role of villain on MTV’s “The Hills.”

While Pratt’s user-generated AI ads have inspired giddy delight from out-of-state Republicans — conservative radio host Buck Sexton praised the Batman video for ushering in “a new era of online persuasion” — it’s still not clear if they will convince Angelenos to vote for him.

Certainly, the ads have helped Pratt gain recognition. They have also given voice to a groundswell of frustration with L.A.’s Democratic establishment and created space for more pressing debate on the future direction of the city.

But there is little evidence that the AI ads, in themselves, are persuading new voters.

So far, none of the AI ads that Pratt has shared have received as many views on his X account as a non-AI ad his campaign produced that has racked up more than 14 million views.

In it, Pratt stands outside Bass’ city-owned Hancock Park mansion and Nithya Raman’s home in leafy Silver Lake, then pans to an Airstream on the charred ruins of his own home, which burnt down during the Palisades fire.

“They don’t have to live in the mess they’ve created,” Pratt says as he walks down an L.A. street littered with homeless tents.

Meghan Daum, a former Los Angeles Times columnist who has endorsed Pratt and dubs herself a self-appointed “liberal elite whisperer for Pratt,” said she thought Pratt’s Airstream ad was more effective than the AI superhero ads. She voiced concern his sharing of AI videos could actively undermine his campaign.

“They will be repellent to the undecided voters Pratt needs to catch, most of whom will think they’re coming directly from the campaign,” she said on X. “Get smarter, guys.”

Using AI, she told The Times, could turn off voters in a town where so many film workers have lost jobs to AI. She also worried about the legality of ads — such as one video purporting to be a Bass campaign ad — that put words in the mouth of computer-generated politicians.

But Daum noted that others told her this was the aesthetic of the new world and a way of getting people who have not voted in the past excited about something.

“That may be true,” she said.

So far, there is little evidence that AI in U.S. political campaigns has affected elections.

“There’s a lot more fear about the effects of AI in politics than evidence of the effects of AI in politics,” said Brendan Nyhan, a political scientist at Dartmouth College who co-authored a recent report on AI and persuasion.

During the 2024 election, Nyhan noted, AI was frequently used to create “obviously false” images of attention-grabbing, funny or raging content. “It seems to be more of a mechanism for reaching your base,” he said, “rather than persuading voters who haven’t made up their mind or might stay home.”

Ultimately, Pratt’s personal story of loss — and more specific complaints about L.A.’s systemic failures in preparedness and emergency response during the 2025 firestorms and spending on unsuccessful programs to house the homeless — may resonate more than simplistic AI stories of evil Democrats hellbent on razing their city.

Some L.A. political observers admit they were surprised by Pratt’s performance in a May 6 televised debate with Bass and Raman.

”Spencer Pratt was kind of a laughingstock when he first announced that he was going to run, and he has dramatically exceeded expectations,” said Klink, the GOP strategist. “I think that he surprised people in his ability to come up with solutions. … That’s what’s going to convince people to vote, not the Batman or Star Wars ad.”

As millions of people click on Pratt videos — in some cases more than the 3.8 million people living in L.A. — Klick said there was one question Pratt needs to be asking: “Do views of his ads translate into votes?”

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