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Netflix to Hike Prices After Actors' Strike Ends; U.S. Will Transfer Seized Iranian Weapons and Ammo to Ukraine; Aid to Ukraine in Limbo After McCarthy Ousted as Speaker; NASA: More Material than Expected in Asteroid Sample. Aired 3:30-4p ET

Aired October 04, 2023 - 15:30   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

[15:30:00]

PAMELA BROWN, CNN HOST: Get ready to pay more for Netflix if you don't want to watch ads. The Wall Street Journal is reporting that Netflix will hike prices in the U.S. and Canada as soon as the actors strike in Hollywood is resolved. According to the reports, streaming services are charging us about 25 percent more just this year for their services. If you don't want to watch ads. CNN Senior media reporter Oliver Darcy is here to explain all of this. So, Oliver, why are we seeing these price hikes?

OLIVER DARCY, CNN SENIOR MEDIA REPORTER: Well, according to the Wall Street Journal, Netflix is planning to raise the prices after the conclusion of both the writers strike, which they reached a deal last week or two weeks ago, and the actors strike, which is still ongoing. And the studios are still trying to find a solution for that.

And that's likely because costs are going to go up. They're going to have to pay writers more money and actors more money, and so passing along perhaps that price to the consumer might make some sense. But the big -- the big overarching theme here is that Wall Street was at one point rewarding subscriptions at any cost. The game -- the name of the game in streaming was just grow your subscription base, pay whatever. Don't worry about profitability. And that's changed in the last year or so.

Now there's a big push to be profitable to really get as much money -- squeeze as much money out of the consumer as possible. And so you're seeing companies across this landscape raise prices. And Netflix would be just the latest.

BROWN: Right. So with the raising of prices though, then could they risk more consumers quitting? What kind of trend line are we seeing on that front?

DARCY: I think what they're trying to do here -- you'll notice that they're raising prices, reportedly, according to the Journal, on the ad free tier, the advertisement free zone. And what they really would like to do, these companies, is push the consumer toward the advertiser supported tier. And that's because the tier that relies on advertisements is actually a lot more lucrative for these companies. So while it's cheaper for the consumer, I think Netflix it starts at $6.99 versus $15.99 with ad free. It's actually a way to make more money for Netflix and for these other companies.

And that's why you're seeing companies across the board raise the prices on those ad free models pushing the consumer toward the ad supported models. Yesterday, Discovery Plus, which is owned by our parent company Warner Brothers Discovery, they did the same thing. They raised the ad free model of that platform from $6.99 to $8.99. And so I think this is going to be a trend that you're going to continue seeing as these companies again try to increase their profits to satisfy Wall Street.

BROWN: All right, Oliver Darcy, thank you so much -- Boris.

BORIS SANCHEZ, CNN HOST: Now to some of the other headlines we're watching this hour. The man accused in the 1996 killing of rapper Tupac Shakur made his first court appearance this morning. Dwayne Davis was arrested last week after a grand jury indicted him on charges of murder. The 60-year-old was scheduled to be arraigned this morning, but his attorney wasn't there, so the hearing is going to be delayed until later this month. Davis is now being held without bail.

Overseas, activists in Iran are now accusing the country's morality police of assaulting a teenage girl for not wearing a hijab or a headscarf, at a metro station in Tehran. The morality police and the girl's parents claimed the 16-year-old was hospitalized after suffering from low blood pressure.

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But activists and opposition groups claimed the teen suffered head trauma and has been in a coma since Sunday. CNN has reached out to Iran's government for comment.

And a Russian journalist who lashed out in protest over the war in Ukraine during a live news broadcast has been sentenced in absentia to 8 1/2 years in prison. She was found guilty of spreading false information about the Russian military. In a statement she called the charge against her ridiculous and politically motivated. She actually escaped house arrest with her daughter last year and is now in Paris, according to her assistant.

Still to come on NEWS CENTRAL, CNN exclusive reporting into what the United States is now doing with millions of seized Iranian weapons.

Plus, how the chaos here in DC on the nation's capital is being felt more than 4,000 miles away in Kyiv. We'll be right back.

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BROWN: Well, at a time when Congressional dysfunction, it could tie up further Ukraine aid in Washington and NATO is warning it is running out of ammunition to provide Kyiv. Ukraine is getting a military boost from an unlikely source, Iran. For Iran, this is not by choice. The U.S. recently seized weapons and ammunition from the Iranian regime, and CNN has exclusively learned those military assets are being transferred to Ukraine. Let's bring in CNN's Natasha Bertrand, who broke this story. So tell us how this works, Natasha.

NATASHA BERTRAND, CNN NATIONAL SECURITY REPORTER: Yes, Pam. So these are munitions and weapons that the U.S. Navy has seized from ships that are being sent from Iran to Yemen to kind of fuel the war in Yemen and support the Houthis there. And these are ships that the U.S. has essentially intercepted and taken thousands of weapons from, including rifles and other things like grenade launchers and rocket launchers, as well as over a million rounds of ammunition over the last several months.

And the argument from advocates has been, why don't we just use all of the weaponry and equipment that we have seized from the Iranians as part of this crackdown on this illicit smuggling route to send it to the Ukrainians instead of just kind of keeping it in storage. Now, apparently, according to central command, they have already started to transfer some of this seized equipment to the Ukrainian forces as recently as Monday.

According to a statement that we received from U.S. Central Command, quote:

On October 2nd, the U.S. government transferred approximately 1.1 million 7.62-millimeter rounds to the Ukrainian Armed Forces. The government obtained ownership of these munitions on July 20th, 2003, through the Department of Justice's civil forfeiture claims against Iran's Islamic Revolutionary Guard Corps.

Now this is really key, because this is the legal mechanism through which the U.S. is able to use this seized equipment, these seized munitions to send them to Ukraine. It is through civil forfeiture. Essentially, they work with the Justice Department to request that these assets, these Iranian weapons and equipment be forfeited, essentially allowing the U.S. government to take ownership of them. At that point, the U.S. can then transfer them to a third party, to the Ukrainians as they wish.

Now, this is really important because of course, the Iranians have been working with the Russians to support the Russians war in Ukraine. They have been supplying them with drones and other forms of weaponry throughout the course of the war. So this could actually potentially drive a wedge between the Iranians and the Russians, as the U.S. works to take seized Iranian weapons and put them into the Ukraine's hands of the Ukrainian forces.

Once the Russians see those Iranian weapons ending up on the battlefield and the Ukrainians of course being replenished in their ammo stockpiles with this equipment, then it could raise some concerns, of course, among the Russians and potentially drive a wedge in that partnership -- Pam.

BROWN: All right, Natasha Bertrand, thanks so much -- Boris.

SANCHEZ: The historic vote to remove Kevin McCarthy from his speakership is further complicating the process of providing aid to Ukraine. Right now, the House is adjourned until next week and no legislation can be passed until a new speaker is elected. This leaves President Biden's request for an additional $24 billion of aid in limbo. It's estimated that Ukraine's current burn rate of weapons and munitions is nearly $2.5 billion per month. The Pentagon has warned that money for Ukraine is now running low, with about $5 billion currently available. That's essentially 2 months' worth of money. Of course, all of this is happening as Ukraine's counteroffensive against Russia grinds on, with little change on the frontline.

(BEGIN VIDEO CLIP)

MARK ESPER, FORMER DEFENSE SECRETARY UNDER PRESIDENT TRUMP: Things look a lot better if you're Vladimir Putin sitting in Moscow. I mean, he sees a U.S. government that's dysfunctional right now that that can't provide the aid that the Ukraine needs. And of course, if U.S. aid to Ukraine falls, we're like the -- we're like the big Jenga block at the bottom of the tower. You pull that out and a lot of other Western aid risks being lost as well.

(END VIDEO CLIP)

SANCHEZ: Let's take you now live to eastern Ukraine with CNN senior international correspondent Fred Pleitgen. So Fred, what's the reaction there been to the chaos unfolding in the House of Representatives?

FREDERIK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT: I think there's a lot of fear and a lot of concern here among the Ukrainians. And we were actually on the front lines earlier today, Boris, to speak to some of the Ukrainian soldiers who are fighting there and who have those issues with the ammunition. Of course, are very, very afraid at this point in time that there could be delays in further shipments from the United States.

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And possibly that aid from the U.S. at some point in time could maybe not dry up altogether, but considerably become less than it has been so far.

And we were on the front lines, the troops there tell us that right now they already have a lot less ammo than the Russians do. They say it's a big problem for them. We were here on the eastern front, where the Ukrainians actually have been advancing a good deal over the past couple of weeks, so that we've sort of been witnessing all this.

But even the troops that we were with today, and it was a unit that had a light howitzer with ammo actually from the United States, and they were saying for every shot that they can fire, the Russians fire 10. And that's as the Ukrainians are trying to advance and they need a lot of ammo to do that. So for them, if that were to dry up, it obviously would make things even more difficult than they already are.

And we have to keep in mind, Boris, that the U.S. is by far the largest provider of arms to Ukraine. And when you go around the area of the battlefield here in the east, or even in the South, it is quite staggering how much U.S. equipment you see here. U.S. vehicles, U.S. armored vehicles, of course, U.S. guns, U.S. ammunition as well. So it would be very difficult for the Ukrainians to make up for any sort of shortfalls that could occur as they are already sort of behind the Russians as far as ammo is concerned.

There's certain types of ammunition that NATO partners could also provide, like for instance, artillery, ammunition, bullets, mortars, things like that. But of course, there's also specialized items that only the U.S. can give the Ukrainians. If we look, for instance, at HIMARS, multiple rocket launching rockets to replenish those. Also surface to air missile systems that come from the U.S., like the NASAMS, could only be replenished by the U.S.

So a lot of that certainly is causing a great deal of concern. Here on the frontline, soldiers that we're speaking to, but then also, of course, in Kyiv as well. As among Ukrainian officials who of course very much are banking on the United States, as they continue to try and bring that offensive forward. But also, of course, in the defense of the country here. And they say it could cause them serious issues if the U.S. were to provide less aid than they already are. And so it's definitely something that's on the mind of the leadership here in this country, certainly something that we're hearing as well -- Boris.

SANCHEZ: Fred Pleitgen from eastern Ukraine. Thank you so much.

Houston, we have a problem. Scientists have now opened up an asteroid sample capsule. We'll tell you what they found in just a few moments. Stay with us.

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(COMMERCIAL BREAK)

BROWN: Well, some things are worth the wait. NASA scientists are getting their first look at a sample of dirt and dust taken from an asteroid. A sample that a spacecraft collected and brought back to Earth last week. But the unveiling is taking a lot longer than expected. CNN Tom Foreman joins us now with the latest on NASA's mission here. So scientists say it may have clues to the start of the solar system, but there could be a problem.

TOM FOREMAN, CNN CORRESPONDENT: There is a problem. It's going too well this thing. Look at what it was dropped off here last month. Unbelievable. This probe out here called OSIRIS-REx was flying around. It had visited this asteroid and as it came back to Earth it dropped this thing off at about 63,000 miles above the earth. There it is, dropping away and falling back to the Earth. But you can just barely see a little crescent over to the left, traveling about 30,000 miles an hour.

It comes down here comes by parachute. It lands. And now, they're opening it in the lab. And what they're saying is that the sample they got from this asteroid, the asteroid Bennu, which is somewhere out between us and Mars.

When they got this sample, they got more than they expected. So now we're talking about maybe a half pound of material here and they're opening it very carefully, so they don't lose any of it to see what it can tell us. As they say, the sample runneth over. Because those NASA people talk like.

BROWN: They do. And it's a good problem to have, that is for sure.

FOREMAN: Yes. Oh, that's great. Fantastic.

BROWN: So what exactly is NASA hoping to glean from this asteroid sample?

FOREMAN: Bennu is such a soft asteroid out there. If you and I were to stand on it right now, it'd be like being in a ball pit. We would just sink down. This probe barely escaped sinking into it. What they did manage to do is get material from this asteroid, which is considered to be from the beginning of the solar system, really critical. It's a period of time in which we can learn an awful lot about the makeup of the solar system.

So what they're trying to do is analyze all this material, this dust, and these little rocks. To see if they can find signs of organic material. Instead, it will offer generations of scientists a window into the time when the sun and the planets were forming about 4.5 billion years ago. And they're looking for organic material. Anything that would suggest water anywhere else. Thing that would just give them an idea of where we all came from. Bennu, a really interesting choice for them to look at right now with this sample. The first ever come back from an asteroid.

BROWN: This is fascinating. I mean, I think this is so cool that they could learn more about the start of the solar system, how we all came to be. So tell us a little bit more about this asteroid and what happens now?

FOREMAN: Well, what happens now is OSIRIS-REx. OSIRIS-Rex, Osiris, being the Egyptian God of among other things, rebirth and life. This it would have been the king of all of that as OSIRIS-REx. Now it changes the name to OSIRIS-APEX, top of the chain. And it goes spinning back out into the atmosphere out there -- or the lack of atmosphere out there -- to go find another asteroid and come back billions of miles of journeys to collect this kind of material. Which could mean so much to our understanding of everything being done by a robot out in space.

BROWN: Wow. What a fun assignment today. Tom Foreman, thanks so much.

And still ahead, it is the most wonderful time of the year, Fat Bear Week. That's ahead.

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SANCHEZ: Don't walk. Run because it is officially Fat Bear Week. No embarrassment for these Grizzlies that Katmai National Park in Alaska brands this annual contest as a celebration of success as the bears beef up before hibernation.

BROWN: So here we go. Bear with us for your rundown of the first round of competition with before and after pictures. You knew there would be lots of puns. Come on, with the segment like this. So 806 spring cub won the Fat Bear Junior competition. Look here. Now gets to hang with the big dogs or bears.

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Taking on 428 described as a pudgy 3 1/2-year-old.

SANCHEZ: And in match number two of the day, it's the veteran mom versus the first-time mama bear, 402 has had at least 8 litters and 901. Just had her first one in early summer.

BROWN: Well, if you want to get on, on the action, just head over to fatbearweek.org. The champion will be crowned next Tuesday. I got to admit, I never knew this existed, but how cute?

SANCHEZ: Yes. And the really exciting thing is the winner could potentially become the next Speaker of the House. I'm just kidding. I'm just kidding.

Thank you so much for joining us today. "THE LEAD" with Jake Tapper starts right now.