Good morning. Ted Sarandos was denied best picture last night despite his massive "Roma" marketing campaign — a blow to Netflix and a victory for Hollywood's old studio guard. (More on that below).

• I'm en route to Half Moon Bay for the NYT's New Work Summit.

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Bob Kraft faces charges

Moving the Market: New England Patriots owner Bob Kraft is expected to be formally charged later today for soliciting prostitution in a Florida massage parlor, part of a crackdown on a multimillion-dollar human-trafficking operation that blew open on Friday.

• Kraft, who has denied the charges, was spotted attending pre-Oscars parties in Los Angeles over the weekend at the homes of Ron Perelman and Barry Diller.

• Former Citigroup president and CFO John Havens and J.W. Childs, founder of private equity firm John Childs, are also among the hundreds of men who face charges in either Florida or New York.

The Big Picture: Kraft's arrest could precipitate the downfall of one of the most powerful men in the business of American sports, one whose influence extends to the worlds of media and entertainment, real estate and private equity. It also raises questions for the NFL.

• The Bigger Picture, via NYT's Patricia Mazzei: The "lurid celebrity connection" has drawn attention to "the wretched story of women who the police believe were brought from China under false promises ... [and] found themselves trapped in the austere back rooms of strip-mall brothels."

Bonus: Kimberly Mehlman-Orozco, author of "Hidden in Plain Sight: America’s Slaves of the New Millennium," explains why she wasn't surprised by Kraft's alleged transgression.

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Zuck cleans up app mess

Big in the Bay, via WSJ's Sam Schechner: "Popular health and fitness apps scrambled to stop sending sensitive personal information to Facebook after The Wall Street Journal reported Friday many were transmitting detailed information about topics including their users’ weight and menstrual cycles."

• "The Journal’s testing showed that at least 11 popular apps were using software that Facebook provides to app developers to send the social network intimate information."

• "Facebook itself contacted some large advertisers and developers in response to the Journal’s reporting, telling them it prohibits partners from sending Facebook any sensitive information about users."

• "The company said it is working on new systems to detect and block uploads of such information by apps, according to a person whose company was contacted by Facebook."

What's Next: The Journal's reporting has launched a debate about how much responsibility Facebook should bear for the transgressions of other companies that violate its terms of service.

• The answer: Not much. As Wired's Antonio García Martínez writes, "Facebook was in no way involved with the data collection, nor do they store the data in usable form."

• "[If you find it] weird that an app developer is segmenting you by heartrate ... get angry at the app developer."

📱 Rally the Market 📱

Dept. of Deliberate Living ... NYT's Kevin Roose ditched his iPhone, and wrote about it: "For the first time in a long time, I’m starting to feel like a human again."

• It's only TL;DR if you're addicted to your phone.

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Mark Thompson's path to 10m

What's Next: New York Times chief Mark Thompson is laying the groundwork for the lofty ambition he announced earlier this month: Growing the Times subscriber base from its current 4.3 million to 10 million by 2025.

The Path, via Bloomberg's Gerry Smith:

• "Two years ago, California surpassed New York as the Times’ largest U.S. market for digital subscribers. The company’s executives now see opportunities to add customers in two other big states: Texas and Florida."

• "A major piece of the strategy is a new TV show, 'The Weekly,' which debuts in June on the Hulu streaming service and the FX network, [which] is available in roughly 90 million homes."

• "Overseas readers are another big target. About 16 percent of Times subscribers currently reside outside the U.S., and English-speaking countries like Britain, Canada and Australia offer ripe opportunities for growth."

The Big Picture, via Nieman's Ken Doctor: "The Times’ success is a welcome tonic to anyone consumed with worry about the fate of the press into the 2020s."

• "In its beliefs in increasing its volume of high-quality content, in hiring the best journalists, in creating superior mobile products, and in providing a technological foundation to support that business, it can teach lots of lessons to any news operator — no matter the size."

Market Links

• Mike Bloomberg is credited with NYC's tech surge (NYT)

• Craig Newmark discusses $85 million journalism gift (Quartz)

• Ren Zhengfei builds $2,600 phone to rival Samsung (Bloomberg)

• Stephen Cooper's WMG sues Spotify in India (Bloomberg)

• Ryan Murphy announces his first Netflix series (THR)

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WGA goes to war with agencies

Talk of Tinseltown: The Writers Guild of America, the group of labor unions representing Hollywood screenwriters, says it is "preparing a lawsuit" against the major talent agencies, escalating a war that could potentially shakeup the television business.

What You Need to Know:

• The WGA has taken issue with packaging fees, a decades-old practice wherein agencies receive upfront and back-end payments for "packaging" a television show by grouping together a writer and, say, a director or actor. (See Gavin Polone's 2015 essay).

• On Saturday, the WGA said it was "preparing a lawsuit" to challenge "packaging" as a conflict of interest and as an "illegal kickback" under federal labor law.

• Talent agency WME is inviting its writers into its offices this week for a series of open house meetings to address writers' concerns, per sources familiar with the plans.

What's Next, via Variety's Dave McNary: "The WGA has made it clear that it wants its 12,000 members to cut ties with their agents if the agents do not sign on to the new Code of Conduct. The current 42-year-old agreement will expire on April 6."

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Ted Sarandos comes up short

About Last Night: Netflix content chief Ted Sarandos was denied the top Oscar for "Roma" despite spending an estimated $25 to $30 million on marketing (if not more) in a bid to complete the Silicon Valley upstart's disruption of Hollywood.

• The Best Picture award instead went to Universal's "Green Book," capping a night in which the old studios, especially Disney, Fox and Universal, won handsomely.

• "Roma" director Alfonso Cuarón picked up awards for best director, best cinematography and best foreign film, accounting for three of the four awards that Netflix won.

The Big Picture: Netflix marketed the hell out of a film that was good enough to win three of the top categories, and they still didn't secure Hollywood's top honor.

• Which means if you're a top filmmaker in Hollywood with dreams of the grand prize, you're still not sure Netflix is a safe bet.

Top Tweets, via THR editor-in-chief Matt Belloni:

• "Netflix clearly didn’t spend enough."

• "That people consider Green Book an upset is a testament to how successful Netflix’s Roma campaign was. They took a black and white foreign language film all the way, in the process sparking a dialogue about the future of film. A pretty remarkable achievement. #Oscars"

Like I said last week, in some ways Ted Sarandos already won.

Bonus .... The real winner: Participant Media, which brought you both "Green Book" and "Roma."

What's Next: Netflix teased it's next big film last night: "The Irishman," directed by Martin Scorsese, written by Steven Zaillian, and starring Robert De Niro, Al Pacino, Joe Pesci and Harvey Keitel. ... In theaters this fall.

See you tomorrow.