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| Here's your daily business briefing. - 📺 Netflix's Ad-Supported plan gains 23 million monthly users
- 🌊 Deep Dive: BlueTriton explores U.S. spring
- 👞 Wolverine World Wide sells Sperry to Authentic Brands
Thanks for reading!! Shriram
p/Shriram | |
| 1 | | Netflix's ($NFLX) ad-supported tier now boasts over 23 million monthly active users, marking a surge of around 8 million users in about two months. This growth follows Netflix's report of 15 million global monthly active users in November 2023. More: - The industry leader in streaming places a strong emphasis on growing the business, with the expansion of ad-supported plan membership being viewed as a top objective.
- In October 2023, Netflix experienced nearly 70% quarterly growth in ad-based plan memberships, with about one-third of new signups choosing the ad-supported model in eligible countries.
- In 2022, the ad-supported plan was introduced in several nations, including the U.S., Canada, Australia, Brazil, France, Italy, Germany, Japan, Korea, Mexico, Spain, and the U.K.
- In a November release, Netflix stated that it uses advertisements for varying durations, such as 10, 20, and 60 seconds.
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| 2 | | 
What the numbers say: BlueTriton Brands, the owner of Poland Spring, Deer Park, and Arrowhead, increased water pumping at Ginnie Springs by 37% from 2020 to 2022, reaching close to 115 million gallons in 2022. Pumping also rose at other BlueTriton sources in at least six states: Florida, Maine, Colorado, Michigan, Texas, and South Carolina, raising concerns about resource stewardship. Relevance: BlueTriton, a significant U.S. bottled water market player, operates under private equity ownership. Environmental concerns surround its water-pumping practices, including ecological changes and challenges in regions where it draws water from sensitive sources. More data: The U.S. Geological Survey is examining the bottled water industry's impact on watersheds, including BlueTriton-operated springs like Ginnie Springs in Florida. BlueTriton faces challenges, including a Moody's credit downgrade and legal issues over water rights in California, highlighting complexities in the state's water rights system. | | | |
| A message from our sponsor, Calendly. |  | | Turn scheduling from a pain point into a competitive advantage The average meeting takes 7.5 emails to schedule. All that back-and-forth, plus reminders and follow-ups — it's a poor experience for you, your customers, and your prospects. Calendly lets you eliminate that busywork and delight everyone you meet. Teams that use Calendly are seeing: - 2x conversion rates (CallRail)
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| 3 | | Wolverine World Wide ($WWW) has offloaded Sperry to Authentic Brands Group and the North American operating partnership with Aldo Group. Aldo Group will oversee Sperry's wholesale, e-commerce, and store operations and collaborate on footwear design, production, and global distribution in a deal valued at $130M, with proceeds directed towards Wolverine's debt repayment. More: - In 2012, Wolverine purchased Sperry in a $1.23B transaction that included Keds, Saucony, and Stride Rite.
- The choice to divest Sperry stemmed from recognizing that further investment in the brand would redirect resources away from more promising areas within Wolverine's business.
- Sperry's sales for the three months ending on Sept. 30 came to $46.2M, a 41.4% decrease from last year.
- To streamline operations and eliminate failing assets, Wolverine has been selling things like Hush Puppies' intellectual property in China and Keds to designer brands.
- Authentic Brands Group aims to increase Sperry's market share worldwide by expanding its product line to include rainwear, sportswear, luggage, and accessories.
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| 4 | | Hertz ($HTZ) is selling about one-third of its global electric vehicle fleet, totaling around 20,000 U.S. EVs, due to reduced demand for electric rentals. The company intends to use the proceeds to buy internal-combustion-engine vehicles, departing from its previous EV-focused strategy. More: - Hertz placed a significant EV investment in 2021 when it placed an order with Tesla for 100,000 vehicles; this helped push Tesla's ($TSLA) valuation above $1T.
- The Florida-based firm initially intended to electrify 25% of its fleet by the end of 2024, but it withdrew that aim to concentrate on margin improvement and supply-side optimization.
- In addition to consumer reluctance, worries about charging infrastructure and battery range limits have hampered the auto rental industry's efforts to promote the wider adoption of electric vehicles.
- By 2025, Hertz anticipates that the sale will result in higher daily revenue and lower operational and depreciation costs.
- The business adjusted its year-end outlook, anticipating a negative EBITDA of $120-130M, excluding noncash charges related to EV sales, with expected revenue of $2.1-2.2B for the quarter ending Dec. 31.
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| A message from our sponsor, Placer.ai. |  | | 8 Retail Trends to Watch in 2024 2023 was another tumultuous year as inflation, high interest rates, and general economic headwinds continued to constrain consumer behavior. Still, this year also revealed many bright spots across various consumer-facing sectors, from retail to dining to advertisement to entertainment. Which of these developments are likely to shape the consumer landscape in 2024? Read the whitepaper to find out: - Why will events continue creating significant opportunities for their surrounding areas?
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| 5 | | LeBron James has signed a multiyear deal with Fanatics Collectibles, concluding a two-decade partnership with Upper Deck. As part of the agreement, a distinctive Bowman brand card featuring a dual autograph of LeBron James and his son Bronny will be available for retail starting Jan. 19, signifying a significant change in the sports memorabilia and trading card industry. More: - In 2022, Fanatics Collectibles — a division of Michael Rubin's sports platform company Fanatics — paid $500M to acquire Topps.
- Fanatics will be the exclusive NBA trading card maker starting in 2026, replacing Panini with the rights to produce cards featuring LeBron James.
- Fanatics Collectibles has exclusive rights to produce and distribute trading cards for various sports properties, including MLB and the NFL Players Association.
- Fanatics secured a significant victory with the deal, capitalizing on James' standing as the NBA's most valuable athlete; his shift from Upper Deck mirrors his transition from Coca-Cola to Pepsi in 2021 after an 18-year partnership.
- The deal's estimated annual worth, which could exceed $5M, is still unknown.
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| 6 | | Walmart ($WMT) is extending drone delivery to 1.8 million more homes in Dallas-Fort Worth, covering over 30 towns and reaching 75% of the metroplex's population. Partners for this expansion include Zipline and Wing, an Alphabet subsidiary with a delivery radius of up to 10 miles. More: - The initiative seeks to enhance community convenience through drone delivery, providing swift access to a diverse selection of Walmart products delivered directly to customers' homes.
- In 2022, Walmart and DroneUp introduced drone services in the DFW region.
- The recent FAA exemptions for Wing and Zipline, allowing drone flights beyond the visual line of sight, were crucial for their expanded operations.
- Through the Wing and Zipline websites, qualified consumers in the area can place orders for various goods, including groceries and necessities for the home.
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- Google is laying off hundreds in its digital assistant, hardware, and engineering teams, aiming to cut costs and emphasize artificial intelligence initiatives.
- Jack Kleinhenz, chief economist at the National Retail Federation, anticipates a shift away from the current resilience in consumer spending, expecting a change in the trend.
- SpaceX successfully tested text messages via Starlink satellites using T-Mobile's network, advancing its plan to introduce direct-to-device cell service in the coming year.
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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 Aaron Crutchfield | |
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