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| Here’s your daily business briefing. - 📺 Amazon launches ad-supported Freevee on Prime Video
- 🔍 Deep Dive: Weight loss drug users dine out less
- 📊 Q1 2024: Verizon sees fewer subscriber losses
Thanks for reading! Shriram
p/Shriram | |
| 1 | | Amazon Live recently launched a shoppable, free ad-supported channel (FAST) on Prime Video and its Freevee ad-supported video-on-demand (AVOD) streaming service, utilizing "shop the show" technology. With the channel, American viewers can use their mobile devices to browse, shop, and interact with TV-screen content. More: - It offers around-the-clock programming featuring content from celebrities, creators, and brands such as Lala Kent, Tastemade, and The Bump.
- According to 2023 Samba TV research, 75% of U.S. adults use a mobile device while watching TV, prompting platforms like NBCU and Disney to launch shoppable TV services eagerly.
- According to the company, over a billion people watched Amazon Live videos in the U.S. and India last year.
- In the fourth quarter of 2023, Amazon's net sales increased by 14% to $170B, with its advertising sales growing 27% YoY to $14.6B.
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What the numbers say: A Morgan Stanley survey of 300 consumers taking GLP-1 drugs found that 63% spent less on eating out at restaurants, while 61% reduced spending on deliveries or takeout; only 31% reported spending less on groceries. The survey also highlighted changes in food consumption habits, with 42% of participants finishing less food they ordered when dining out and 41% ordering smaller portions overall. Relevance: The survey highlights concerns that the increasing demand for GLP-1 drugs could affect the profits of restaurant and packaged food companies, prompting food and beverage companies to adjust to health-conscious consumer behaviors resulting from the use of GLP-1 medications. More data: Morgan Stanley predicts a potential 4-5% decline in snack, confectionery, carbonated drink, and alcohol consumption by 2035 due to weight loss drugs, with pre-packaged fruit juices, soups, sports drinks, and coffee expected to be least affected. The survey also noted a decrease in smoking habits, with traditional cigarette use dropping from 40% to 24% and e-cigarette use falling from 30% to 16% after starting GLP-1 treatment. | | | |
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| 3 | | Verizon's first-quarter report revealed a loss of 68,000 monthly bill-paying wireless phone subscribers, less than the estimated 100,000, and an improvement from the 127,000 losses in the first quarter of 2023. Most of Verizon's customers now opt for its premium, customizable myPlan option, improving its performance. More: - Verizon reported quarterly revenue of $33B, slightly below the LSEG estimate of $33.24B, while the company's profit of $1.15 per share, excluding items, surpassed the LSEG estimate of $1.12 per share.
- Verizon has teamed up with streaming services like Disney, offering promotional bundles that include free access to Disney's services for new and existing customers on specific plans.
- Additionally, with some myPlan bundles, Verizon started to offer cheap subscriptions to Warner Bros. Discovery's Max and Netflix.
- Verizon's shares were down 3.3% in early trade despite the company's strong subscriber performance, attributed to the industry's development difficulties.
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| 4 | | The Cricket World Cup matches will be held in the U.S. for the first time in June, aiming to grow the sport in North America alongside Major League Cricket, which debuted in 2023 with six teams. Additionally, the U.S. men's national cricket team will participate in the International Cricket Council Men's T20 World Cup, co-hosted by the U.S. and the West Indies. More: - In nations like India, cricket is extremely popular, and the Indian Premier League has played a significant role in the sport's expansion.
- Cricket contributed up to 85% of India's national sports budget in 2022, with an IPL franchise valued at over $1B.
- The ICC strategically chose to host part of the World Cup in the U.S., targeting the country's growth potential and capitalizing on the South Asian diaspora's interest in cricket.
- The U.S.-India match during the World Cup has already sold out, indicating considerable interest.
- Cricket enthusiasts in the U.S. are excited about the World Cup, hoping it will promote further growth and awareness of the sport, potentially including women's cricket.
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| 5 | | Lowe's has teamed up with DoorDash to provide on-demand deliveries from more than 1,700 locations nationwide, allowing customers to buy Lowe's products directly through the DoorDash app, with participating stores accessible on DashPass. This partnership marks DoorDash's entry into the home improvement sector. More: - DoorDash expands its reach by adding Lowe's to its retailer roster, including Pet Supplies Plus, The Vitamin Shoppe, Sally Beauty, and MAC Cosmetics, broadening its presence in the home improvement sector.
- Neelima Sharma, Lowe's SVP of digital commerce and technology, highlights the importance of using an omnichannel strategy to satisfy customer demands.
- Lowe's Q4 net sales dropped by 17% YoY to $18.6B, with 2023 net sales declining by 11% to $86.4B.
- Margi Vagell, who has previously held several positions within the organization, has been hired as Lowe's executive vice president of supply chain.
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| 6 | | A further 166 Kroger and Albertsons stores will be sold to C&S Wholesale Grocers to obtain regulatory approval for their $25B merger, allaying worries about prospective price rises, store closures, and employment losses. C&S will pay Kroger approximately $2.9B in all-cash consideration, an increase from the previous $1.9B payout. More: - Initially proposing to divest 413 stores and eight distribution centers to C&S Wholesale Grocers, Kroger will now sell 579 stores to C&S after adding 166 more stores.
- Due to worries about rising supermarket prices, the FTC and eight states filed a lawsuit in February to stop the merger.
- The Oregon district court will hear the FTC's request for a preliminary injunction in August.
- According to Kroger CEO Rodney McMullen, the new strategy guarantees that no stores will close and that all front-line employees will have jobs.
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 | Freelance Writer | | Shriram is pursuing Master’s in Business with Marketing at Warwick Business School. He worked as a Senior Consultant in Tech and Political Consultancies before his Masters. He is passionate about Tech, Marketing, Strategy, Anthropology and Politics. He is also the Postgraduate Ambassador for Warwick Business School. | | This newsletter was edited by Shriram Jeevakumar | |
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