☕ Schumer vs. Zynfluencers

Amazon is about to shake up the TV business... January 29, 2024 [View Online]( | [Sign Up]( | [Shop]( [Morning Brew]( PRESENTED BY [EnergyX]( Good morning. We can’t withhold this news any longer: Tax season has arrived. Starting today, the IRS will begin accepting and processing your 2023 federal income tax returns through April 15. Sure, this must feel like your professor explaining that you have a final paper due at the end of the semester and it would be wise to “start now.” But the sooner you file, the sooner you’ll receive a refund. About two-thirds of Americans got a tax refund last year, and the average was $3,167. —Neal Freyman, Dave Lozo MARKETS: YEAR-TO-DATE Nasdaq 15,455.36 +4.67% S&P 4,890.97 +3.12% Dow 38,109.43 +1.05% 10-Year 4.160% +21.4 bps Bitcoin $41,917.97 -0.82% Alphabet $153.79 +10.20% *Stock data as of market close, cryptocurrency data as of 3:00am ET. [Here's what these numbers mean.]( - Markets: We’re running out of metaphors to describe how Big Tech is propping up the stock market, so today let’s go with Atlas, the Titan who is condemned for eternity to hold up the heavens. Because of tech—and the tech industry exclusively—the S&P 500 posted a string of record highs last week. The 10 other sectors in the index are all trading an average of [15% below]( their all-time highs, per the WSJ.  STREAMING [Amazon primed to shake up TV commercials]( [Thursday Night Football]( Nick Cammett/Getty Images Amazon is about to begin delivery on something more than 70 million customers definitely don’t want on their doorsteps: commercials. Starting today, Prime Video will begin showing ads in a move some analysts expect will generate [more than $5 billion in revenue]( annually. Subscribers who do not wish to see commercials while watching Reacher have two options: Cancel the subscription or pay an extra $3 per month to continue with ad-free viewing. Most are expected to sit through the ads: Only about one-third of subscribers will shell out the extra money to avoid commercials, Bank of America predicts. Amazon vs. everyone else As streaming platforms continue their transformation from rebellious disrupters of cable to, well, cable, Prime infusing ads into its platform isn’t shocking. But just how the company’s ad-based product performs against its rivals is a big question. - Netflix and Disney+ went the ad route long ago and already have established relationships with advertisers, leaving Amazon in a position where it must convince brands to shift to Prime. - There’s some catching up to do. As of December 2023, Prime made up 3.3% of US TV-watching time, putting it ahead of Disney+ (1.9%) but behind Netflix (7.7%), YouTube TV (8.5%), and the always stiff competition of “other streaming” (5.2%), according to Nielsen. But Amazon has something in abundance that the others don’t: [customer data](. With ~70% of US adults having an Amazon Prime membership, the company can use their buying history to place more targeted ads and promise brands a higher return on their marketing spend. Big picture: This move isn’t necessarily a slam dunk. Ad buyers who [spoke]( to the WSJ said a key asset Prime Video lacks compared to Netflix and Disney+ is a high volume of hit shows (all due respect to The Boys and Gen V). That perception will need to change as Amazon, already late, pushes its way into the party..—DL   PRESENTED BY ENERGYX [The next gold rush]( [EnergyX]( Lithium is essential for batteries in electric cars, renewable energy storage, and even smartphones. That’s why demand for lithium is projected to grow 20x by 2040. So when [EnergyX]( revealed that their technology could extract 300% more lithium than traditional methods, investors everywhere took note—General Motors included. GM is the lead investor in EnergyX’s $50m funding round. [And you can join them](. That means you have the unique opportunity to get in on the ground floor of a company just as they’re set to unlock the US lithium supply. Don’t miss your chance: EnergyX’s $8/share price is changing on Feb. 8. [Lock in your $8/share price by becoming an EnergyX shareholder here](. WORLD [Tour de headlines](#) [President Biden]Win McNamee/Getty Images Drone strike in Jordan kills three US troops. The attack, which also wounded as many as 34 military personnel, was [carried out]( by Iran-backed militias operating in Syria and Iraq, the Biden administration said. It marks the first time US service members have been killed in Middle East hostilities since Hamas initially attacked Israel in October and leaves President Biden with a high-stakes test on how to retaliate, given the prospect of direct conflict with Iran. The president did vow a response; in a statement, he said the US “will hold all those responsible to account at a time and in a manner (of) our choosing.” Boeing 737 Max 9s are back in the air. Following FAA approval, Alaska Airlines and United sent the Boeing 737 Max 9 [back into the sky]( over the weekend, less than three weeks after one had to make an emergency landing when a door plug flew off the aircraft. Alaska COO Constance von Muehlen sat in the seat next to the door plug on the airline’s first 737 Max 9 flight following the incident, a show of confidence that the aircraft would no longer provide Apple with a way of demonstrating the durability of its iPhones. United, the only other US carrier that uses the Max 9 and the plane’s largest customer, resumed service on Saturday. Alaska said the groundings cost it $150 million, and it aims to present that bill to Boeing. The Super Bowl will be red (Taylor’s version). The Kansas City Chiefs will face the San Francisco 49ers in the Super Bowl on Feb. 11 after defeating the Ravens and Lions, respectively, in Sunday’s NFL championship games. The Chiefs are aiming to become the [first team]( since the 2004 Patriots to repeat as Super Bowl champs; it’s also their fourth Super Bowl appearance in the last five years. Pity Usher—the Super Bowl’s halftime performer will likely be upstaged by Taylor Swift, whose relationship with Travis Kelce will drive much of the hype over the next two weeks. American Airlines previewed what’s to come by [unveiling]( new direct flights between Kansas City and host city Las Vegas for the game. One is numbered 1989, the other, 87. HEALTH [Schumer, GOP locked in a lip pillow fight]( [Zyn pouches]( Aphis Marta. Licensed under [CC BY 4.0]( The latest battlefront in America’s culture war is the flavored nicotine pouch Zyn. Last week, Democratic Senate Majority Leader Chuck Schumer [urged]( the FDA to investigate Zyn’s marketing and its effects on teen health, sparking pushback from conservatives, who defended the brand. What is Zyn? It’s the leading brand of nicotine pouches in the US. Because of their potency and ability to be hidden (tucked in the upper lip), these pouches have skyrocketed in popularity: In the first three months of 2022, more than [808 million units were sold]( in the US, compared to 126.1 million during a three-month span in 2019, per an analysis of four major brands. What’s the concern? Zyn’s rise has been supercharged by “[Zynfluencers]( who post comedy sketches and have developed memeable slang terms for the pouches like “upper decky” and “lip pillows.” Schumer is concerned that this viral online marketing could pull vulnerable teens into a nicotine habit. The pushback: In response to Schumer, GOP Rep. Marjorie Taylor Greene called for a “Zynsurrection” to protect the brand. Zyn’s pouches have been promoted by conservative online personalities, including Tucker Carlson, for giving users a pick-me-up during the workday and offering a safer alternative to tobacco products. Philip Morris International, which owns Zyn, says it bans the use of influencer marketing and denies it advertises to consumers under 21.—DL   TOGETHER WITH UPWAY [Upway]( Make every ride electric. With a range of renowned brands at up to 60% off retail, it’s no wonder Upway is the [No.1 e-bike provider](. E-bikes are delivered to your home within a week and backed by a one-year warranty. Don’t miss their Winter Sale—Brew readers also get a limited-time [$100 discount with code BREW2024](. CALENDAR [The week ahead](#) [The new Apple Vision Pro headset is displayed during the Apple Worldwide Developers Conference on June 05, 2023 in Cupertino, California. Apple CEO Tim Cook kicked off the annual WWDC23 developer conference with the announcement of the new Apple Vision Pro mixed reality headset.]Justin Sullivan/Getty Images Apple’s VR headsets are on the way: All those neck-strengthening exercises are about to pay off because the first Apple Vision Pro headsets will be available in stores on Friday. Apple began accepting preorders for its $3,500 “spatial computing” devices last Friday, and they sold out almost immediately. Analysts expect Apple to ship between 300,000 and 400,000 units this year in a major test of demand for high-end metaverse hardware. Tech giants highlight busiest earnings week of the season: Five of the Magnificent Seven—Apple, Microsoft, Amazon, Meta, and Alphabet—will deliver their Q4 results, and we advise you against taking a shot every time AI is mentioned. On Wednesday, Boeing is scheduled to give an update on how the 737 Max 9 debacle will impact its 2024 forecasts. In all, 106 S&P 500 companies will report this week, including Starbucks, Pfizer, GM, and Big Oil. Fed meeting and jobs report: As if those earnings won’t keep Wall Street on its toes, the Fed will wrap up its first meeting of the year on Wednesday and the January jobs report will drop on Friday. Chair Jerome Powell will almost certainly keep interest rates unchanged for now, but investors are keen to hear whether he predicts a rate cut in March. On the jobs front, US employers are expected to have continued hiring briskly in January, despite the wave of high-profile layoff announcements. Everything else… - Black History Month kicks off with the start of February on Thursday. - It’s Groundhog Day on Friday. - The 12th and final season of Curb Your Enthusiasm with the irascible Larry David premieres on HBO on Sunday. Pretty, pretty, pretty bittersweet. - It’s Groundhog Day on Friday. - Awards season rolls on with the Grammys on Sunday. They will take place in the Sphere in Las Vegas. GRAB BAG [Key performance indicators](#) [Taylor swift]Kevin Winter/Getty Images Quote: “Something went wrong. Try reloading.” That’s the [message]( you saw on X if you tried searching for Taylor Swift this weekend. The company said it had temporarily blocked searches for the pop star out of “an abundance of caution” after sexually explicit deepfakes of Swift went viral on X beginning on Wednesday, resulting in her fans flooding the site with real photos of her and flagging accounts that were spreading the fake images. Stat: The benefits remote workers enjoy—no commute, cheaper lunches, fewer conversations with coworkers about their fantasy teams—appear to come at a cost. People who worked five days per week at home were [35% more likely to be laid off]( last year compared to employees who made appearances in the office, according to employment data provider Live Data Technologies. Experts attribute the trend to a lack of personal connection with managers, who tend to cut remote workers first when payrolls are trimmed. Read: Young men and young women have very different views of the world. ([Financial Times]( And here is a follow-up analysis of the shocking data. ([Alice Evans]( NEWS [What else is brewing](#) - [A Hong Kong court]( ordered the liquidation of Evergrande, once China’s largest real estate firm, which became saddled with more than $300 billion in debt. - [Elon Musk]( announced X will open a “Trust and Safety center of excellence” in Austin to combat child sexual exploitation material. The timing is likely not a coincidence, as CEO Linda Yaccarino is scheduled to testify before the Senate Judiciary Committee on the subject this week. - [French climate activists]( threw soup at the “Mona Lisa.” (It was not harmed by the splatter thanks to its protective glass case.) - [The Biden administration]( will award billions of dollars in subsidies to chipmakers such as Intel and TSMC in the coming weeks to show progress on the $53 billion Chips Act, the WSJ reported. - [Jannik Sinner]( and [Aryna Sabalenka]( won the men’s and women’s titles, respectively, at the Australian Open. It’s Sinner’s first Grand Slam title…and probably not the Italian’s last. RECS [Monday to-do list image] Data viz: Why China has [lost interest]( in Hollywood movies. Easy living: Bookmark this [video]( for when you need an escape to a simpler way of life. For your charcuterie board: The [best cheeses]( of 2023. Tech tip: Here’s how to [install custom fonts]( on your Kindle. Infinite Jest makes a lot more sense in Webdings. Intensify intimacy: Meet the [Crescendo 2]( the doctor-recommended, FDA-registered vibrator from MysteryVibe. It’s clinically proven to improve arousal and alleviate dryness. [Here’s 30% off]( welcome.* *A message from our sponsor. GAMES [The puzzle section](#) Turntable: You can let those unanswered emails from the weekend sit for 10 minutes longer. Procrastinate responsibly by [playing today’s Turntable](. Roman numeral trivia With the Super Bowl LVIII matchup set, let’s test your knowledge of Roman numerals. Today’s quiz borrows from an [epic Jeopardy! category]( from 2014: “Initials to Roman Numerals to Numbers.” How it works: You’ll be given a clue that’ll lead to a person’s name. Their initials will form a Roman numeral that can be translated into a regular number. The final answer is that number. Example: The TV late-night host who retired from his gig in 2014. Answer: 550. David Letterman = DL - The actor who delivered the line, “How do ya like them apples?” - The 20th-century Hollywood star whose life was chronicled (many say not well) in the film Blonde - The founder of the X-Men - The only member of Charlie’s Angels (the 2000 film version) who would work in this category - He famously “slides” into the broadcasting booth while calling Sunday Night Football games with Mike Tirico. - The writer responsible for many of the jokes in this newsletter. SHARE THE BREW [Share Morning Brew]( with your friends, acquire free Brew swag, and then acquire more friends as a result of your fresh Brew swag. We’re saying we’ll give you free stuff and more friends if you share a link. One link. Your referral count: 0 [Click to Share]( Or copy & paste your referral link to others: [morningbrew.com/daily/r/?kid=a905682a]( ANSWER - 1,500. Matt Damon = MD - 2,000. Marilyn Monroe = MM - 110. Charles Xavier = CX - 400. Cameron Diaz = CD - 200. Cris Collinsworth = CC - 550. Dave Lozo = DL Word of the Day Today’s Word of the Day is: irascible, which means “having or showing a tendency to be easily angered.” Thanks to Laurie Danko of Southport, NC, for the totally chill suggestion. [Submit another Word of the Day here](. ✢ A Note From EnergyX This is a paid advertisement for EnergyX’s Reg A offering. Please read the offering circular at [invest.energyx.com](. Written by [Neal Freyman]( and Dave Lozo Was this email forwarded to you? Sign up [here](. 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