☕ Bienvenidos a Miami

ESPN’s next move could kill cable... May 19, 2023 [View Online]( | [Sign Up]( | [Shop]( [Morning Brew]( TOGETHER WITH [Think!]( Good morning. What’s the absolute best public beach in the US? There’s no better person to ask than the man known as Dr. Beach (who is actually Stephen Leatherman, a professor in the Department of Earth and Environment at Florida International University). For 33 years, Dr. Beach has been ranking the best US beaches based on metrics like wave action, wildlife presence, and sand type. Here are his [top three]( for this summer: - St. George Island State Park, Florida - Duke Kahanamoku Beach, Oahu, Hawaii - Coopers Beach, Southampton, New York Dr. Lake, reveal yourself. —Cassandra Cassidy, Molly Liebergall, Matty Merritt, Neal Freyman MARKETS Nasdaq 12,688.84 +1.51% S&P 4,198.05 +0.94% Dow 33,535.91 +0.34% 10-Year 3.648% -0.3 bps Bitcoin $26,900.59 -1.78% Netflix $371.29 +9.22% *Stock data as of market close, cryptocurrency data as of 4:00am ET. [Here's what these numbers mean.]( - Markets: Stocks [climbed]( for the second straight day as a last-minute deal to raise the debt ceiling begins to [take shape](. GOP House Speaker Kevin McCarthy and Democratic Senate Majority Leader Chuck Schumer signaled their chambers could vote next week on an agreement that would avert the US’ first-ever default. - Stock spotlight: Netflix shares popped after the streamer said its cheaper ad-supported plan is off to a hot start. Earlier this week, Netflix said that [25% of its new subscribers]( opted for the ad tier in regions where it’s available.  MEDIA [The future of cable is in ESPN’s hands]( [Old TV with ESPN logo on floor with the Disney logo]( Francis Scialabba Cable may be going on its Derek Jeter farewell tour sooner than we thought. Yesterday, the Wall Street Journal reported [fresh details]( about ESPN’s long-awaited plan to launch a stand-alone streaming service—a move that could spell doom for cable given the network’s outsized role in keeping cable’s remaining customers from cutting the cord. The push into streaming, reportedly dubbed “Flagship” internally at ESPN’s parent company Disney, has been the industry’s worst-kept secret for years. ESPN Chairman Jimmy Pitaro called the direct-to-consumer shift a matter of when, not if, in an [interview]( with Bloomberg earlier this month. But it looks like that “when” isn’t far downfield, as ESPN execs have started hammering out deals with cable providers and sports leagues to allow programming to be offered via streaming, according to the WSJ. Doesn’t ESPN already have a streaming option? Yes, ESPN+, which it launched in 2018. But this new service would be much more comprehensive than ESPN+, offering the network’s full spectrum of broadcasting, much of which is not available on its current streaming platform. For example, last night ESPN+ showed the South Alabama vs. Arkansas State college baseball game, while ESPN proper broadcast the Lakers vs. Nuggets NBA playoff matchup. Still, there’s a reason ESPN has been cautious in moving its network to the streaming arena. Cable, while on the decline, is a more reliable business, and ESPN makes a boatload of money on linear TV. - ESPN can charge pay-TV providers over $9/month per subscriber, per Bloomberg. - ESPN+ brings in $5.53 monthly from each subscriber. But cord-cutters are gonna cut cords, and Disney’s traditional TV networks—of which ESPN is the golden child—brought in only $1.8 billion in income last quarter, down from $2.8 billion a year earlier, per the WSJ. You don’t have to be a media mogul to understand that the move to make ESPN streamable is “inevitable,” CEO Bob Iger said this month. Bottom line: With live sports serving as the marquee attraction for cable, industry execs predict that ESPN’s total embrace of streaming will be the knockout blow that takes out linear TV.—CC, NF   TOGETHER WITH THINK! [Welcome to day one]( [Think!]( The first (and maybe hardest) step of building a healthy habit is actually starting that new habit. So we’re here to help. We teamed up with think! to create a calendar to help you [build your mental and emotional strength](. think! is passionate about strength and wellness, and their bars provide the perfect fuel for getting through your day and committing to your goals. So what are you waiting for? There’s no better time than now to get started on committing to yourself. And our [28-day calendar]( is full of bite-size tips to get you feeling your best, strongest self. [Take it one day at a time](. WORLD [Tour de headlines](#) [Disney World's castle on an overcast day]Roberto Machado Noa/LightRocket via Getty Images Disney scraps a nearly $1 billion project. Can you guess where? Yep, it’s in Florida, where the company has caught flak from Gov. Ron DeSantis. Citing “changing business conditions” (but not DeSantis explicitly), Disney parks chair Josh D’Amaro announced that Disney was [canceling plans]( for a new corporate campus in Orlando that would have moved more than 2,000 jobs to the area. Disney also said it was [shutting down]( its luxury hotel at Walt Disney World, the Star Wars: Galactic Starcruiser. These projects were the brainchildren of former CEO Bob Chapek. ChatGPT gets its own app. OpenAI released an [app]( of its chatbot for the iPhone in the US and said a version for green texters is on the way. The ChatGPT app functions similarly to the existing browser design (free, no ads), but OpenAI hopes that by making ChatGPT easily accessible on your phone, you’ll use it more—and Google Search less. In other AI news, Meta, for the first time, revealed the extensive infrastructure it’s been building to support its artificial intelligence ambitions, including a “family” of chips. More Americans are high at work. Positive marijuana tests among US workers reached a [25-year high]( last year, according to Quest Diagnostics. The drug-testing lab screened more than 6 million employees for pot following on-the-job accidents, and 4.3% came back positive, a bump from 3.9% in 2021. Quest attributes the jump in positive tests to the wave of marijuana legalization efforts across the country but [warned]( that getting high on the job, which can slow reaction time and impact memory, can “have a major impact on safety at work.” CRYPTO [The largest bitcoin conference is a lot smaller this year]( ["Crypto capital" Miami is doing great, even without crypto]( Francis Scialabba JFK’s nephew, the author of Moneyball, and a robotic bull all walk into an event space—and it’s not that crowded. The third annual bitcoin industry conference is underway in Miami, with less than half as many attendees as last year’s 35,000-person turnout. The three-day [event]( speeches from presidential candidate Robert F. Kennedy Jr. and writer Michael Lewis—is likely drawing smaller crowds because of “crypto winter”: the recent crypto failures (shoutout FTX) dampening enthusiasm for digital coins. Rewind to the pandemic...and Miami was going all-in on crypto. It built a [Transformer-looking version]( of Wall Street’s Charging Bull, its bitcoin-salaried mayor labeled his jurisdiction the “crypto capital of the world,” and the city even rolled out a (now defunct) digital currency, MiamiCoin. Fast forward to 2023...and the crypto fever might have passed. Still, Will Smith’s favorite city is showing it doesn’t need bitcoin to thrive. - Though spiking mortgage rates took a bite out of home prices across the country this year, Miami-Dade County’s median home price grew by about 5%. - Compared to other American downtowns, Miami offices have a relatively low vacancy rate, largely thanks to Florida’s low corporate tax. - It has Jimmy Butler. Party in the city where the heat is on: Miami’s crypto craze may be winding down, but business leaders predict tech startups and traditional financial companies will keep flocking to the 305.—ML   SPONSORED BY BRILLIANT [Brilliant ]( Boost your brainpower in minutes a day. [Brilliant’s quick, visual, interactive lessons]( help you level up fast in math, logic, data science, and more. Get hands-on with everything from foundational math to AI and beyond. Join 10m+ people around the world and [start your 30-day free trial today](. FOOD & BEV [Dip your fries into a buffapeñolte ranch]( [Ketchup pouring into a]( Francis Scialabba Ketchup hasn’t seen innovation like this since the first brave soul hit the 57. Kraft Heinz’s [newest invention]( the Heinz Remix, is a dispenser that lets you get lost in the customization of your sauce. How it works: First, you choose one of four base sauces—ketchup, ranch, 57 sauce, or BBQ. Then, you can select flavor “enhancers” such as jalapeño, smoky chipotle, buffalo, and mango, and decide the level of intensity. Similar to the Coca-Cola Freestyle machines you see in movie theaters, the Heinz Remix will dispense whatever deranged concoction you can come up with. Will everything faintly taste like buffalo? We’ll have to see. The food giant will demo a prototype machine at this weekend’s National Restaurant Association Show in Chicago and intends to start putting the machines in restaurants as soon as this year. The business case: Kraft Heinz isn’t just launching the Remix so teens can make the ultimate graveyard sauce to drink on dares. It’s hoping the machine will help identify what new sauce combos consumers actually want—and add more fuel to its growing food service division. The company has recently made big investments outside your fridge. It closed a deal to put Lunchables in [school cafeterias]( and released a line of professional mayo for chefs.—MM   GRAB BAG [Key performance indicators](#) [An image from Legend of Zelda: Tears of the Kingdom]Nintendo Stat: We weren’t sure it was possible, but there is an entertainment product making more money than Taylor Swift’s Eras Tour. The video game Legend of Zelda: Tears of the Kingdom [sold 10 million copies]( globally in its first three days, generating more sales (an estimated $700 million) than any movie’s box-office debut this year and more than Swift’s romp around the country, per Axios. Tears of the Kingdom could ultimately unseat Hogwarts Legacy as the best-selling video game of 2023. Quote: “Next year will probably be my last year.” Tennis legend Rafael Nadal said a hip injury is forcing him to [pull out]( of the French Open for the first time in nearly 20 years and that he’ll likely retire from the sport in 2024. Nadal is synonymous with the clay at Roland Garros—he’s won an astonishing 112 of the 115 matches he’s played at the French Open. Over his career, Nadal has hoisted 22 major trophies, tied for the most ever in men’s tennis with Novak Djokovic. Read: The last gamble of Tokyo Joe. ([Chicago magazine]( QUIZ [The quiz and the furious]( [New Friday quiz image]( The feeling of getting a 5/5 on the Brew’s Weekly News Quiz has been compared to throwing the first piece of trash into an empty bag. It’s that satisfying. [Ace the quiz](. NEWS [What else is brewing](#) - [Twitter and Google]( scored a win at the Supreme Court, which ruled that the companies were not liable for terrorism-related content on their platforms. - [Five TikTok users]( in Montana filed a lawsuit challenging the state’s complete ban of the app, which was signed into law on Wednesday. That was quick. - [Sam Zell]( the billionaire real estate mogul, died at 81. - [US home prices]( logged their biggest annual decline in 11 years. - [The first kiss]( may have occurred 1,000 years earlier than believed, a new review paper says. Researchers have concluded the first smoochers lived in Mesopotamia about 4,500 years ago. RECS [Friday to-do list] Vision myths busted: Experts [described the habits]( that help (and hurt) your vision. My hull will go on: Take a [3D tour of the Titanic’s shipwreck]( which just got its first full-sized digital scan. Plus, [here’s the Titanic]( compared to a modern cruise ship. Designers—you’ll love this: A YouTuber [redesigns Oslo’s transit diagram](. Trailers galore: Here’s the [first trailer]( for Killers of the Flower Moon (the new Scorcese flick starring Leo and De Niro). Plus, the newest [Mortal Kombat](. Ctrl alt delight: Looking for a community of IT professionals like yourself? Stay up to date on the latest trends with IT Brew. [Subscribe today](. Good vibrations: Meet the wearable that trains your body to embrace sleep and banish stress. [Apollo Neuro’s touch-therapy technology]( uses soothing vibrations to improve sleep, relaxation, and focus. [Keep calm with $40 off]( *This is sponsored advertising content. GAMES [The puzzle section](#) Picdoku: See if you can [“ace” today’s puzzle](. (You’ll see what we mean.) Friday puzzle Take a four-letter word, put a “t” at the front, and you’ll get a five-letter word that means the opposite of the original word. Can you figure out the two words? AROUND THE BREW [Dress for success]( [Dress for success]( Rumor has it that manifesting works. Get started with your new [Rich Girl Sweater]( 30% off. Midyear review coming up? Learn how to get a raise with our [tips on salary negotiation](. Corporate finance pros: Stay ahead of the game with CFO Brew—your 3x per week dose of finance updates. [Subscribe here](. ANSWER “Here” and “there” Written by [Neal Freyman]( [Cassandra Cassidy]( [Molly Liebergall]( and [Matty Merritt]( Was this email forwarded to you? Sign up [here](. 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