🍿 Netflix’s (ad)option

…and semi-private flights take off with commercial prices [Disclosures](   11 minutes of ads (Matt Winkelmeyer/Getty Images)   Yesterday’s Market Moves   Dow Jones 32,561 (+0.98%) S&P 500 4,003 (+1.30%) Nasdaq 11,860 (+1.58%) Bitcoin $28,081 (+0.94%) Dow Jones 32,561 (+0.98%) S&P 500 4,003 (+1.30%) Nasdaq 11,860 (+1.58%) Bitcoin $28,081 (+0.94%) Hey Snackers, [Credit Suisse]( is staging a (fashion) comeback: memorabilia featuring the bank's logo was listed for sale shortly after rival [UBS]( agreed to take it over. SVB swag was so last week. Stocks gained yesterday after Treasury Secretary Janet Yellen said the US government could backstop more banks if needed. Today, all eyes are on the Fed's important rate-hike decision. Play As Netflix’s ad tier hits 1M subs, the streamer bets on games and blockbusters to lure fresh eyes 12 hours of “Outer Banks”… two hours of ads. [Netflix]( ad tier is growing as more Americans pivot to cheaper streaming options. Bloomberg [reported]( that the $7/month subscription hit 1M US users two months after launching in November. While the #s are a drop in the popcorn bucket compared to Netflix's 230M+ non-ad subs, they apparently topped advertisers’ expectations. - Adoption: In January 19% of new Netflix subscribers chose its ad tier. The ad-adoption is slower than that of its rivals: 36% of new [Disney]( subscribers opted for ads after three months (and 21% for HBO Max). - #Subscripturation: The number of Americans who say streaming subscriptions are getting too pricey is up 50% since 2020, and nearly half of people in a recent [survey]( said they pay for streaming services they don’t use. Brick-breaking & blockbusters… Americans are bracing for Netflix’s password-mooching crackdown (expected this month). Meanwhile, Netflix needs to give 100M+ non-paying households a reason to pay for their own accounts. Yesterday the streaming leader said it planned to release 40 new in-app games this year, with 70 more in the works. It now has 55 games, including a "Too Hot to Handle" spin-off that’s racked up 1M+ downloads. Netflix also [reportedly]( plans to splurge $200M+ on an original sci-fi flick (“The Electric State”). The Chris Pratt and Millie Bobby Brown movie could spawn more games, shows, and merch. THE TAKEAWAY The biggest test is still ahead… So far, Netflix has rolled out its password crackdown only in a handful of countries, including Spain and Canada — but complaints are already flooding in. Still, the end of mooching could mean more ad-tier subs. Netflix hopes that if users are price-sensitive enough to “share” accounts with an ex, they might be willing to shell out $7 for ad-Flix. Especially if there are more reasons to tune in. Private Semi-private-flight companies like JSX take off as passengers seek a “Goldilocks option” Arrived 20 minutes before takeoff… didn’t even fly private. Semi-private flights (think: 15 to 30 passengers) have gained traction since the pandemic began, as germ fears led some travelers to seek out less crowded options. These flights aren’t regulated by the TSA and typically depart from private terminals, so security is much quicker. - While these semi-private perks sound pricey, some companies are offering them for prices comparable to first class or even economy. - For example, JSX offers a round trip from Los Angeles to Vegas for under $200. Or an Austin-Dallas roundtrip for $170. Luxury rivals like Aero, Tradewind, and Set Jet are more comparable to first-class prices. - Sweeteners: JSX passengers can valet their cars at the airport and hop on a 30-seat jet (with their pet) just 20 minutes before takeoff. JSX says it’s the first air carrier to roll out in-flight WiFi from SpaceX’s Starlink satellites. - Downsides: These companies have a limited number of routes (nothing near commercial airlines). And they’re typically pricier than a regular flight. Not too hot, not too cold… Most folks can’t afford a first-class ticket, much less a private plane. But most people also hate being sandwiched in the middle seat in economy and would rather skip long TSA lines. Travelers are also tired of thousands of cancellations and delays from major airlines. Semi-private flights offer a Goldilocks option between flying private and flying commercial. THE TAKEAWAY “Too good to be true” is hard to maintain… There’s a reason airlines squeeze us in like sardines: $$. Planes are expensive to fly and maintain, and 30-person flights at commercial prices don’t seem like sustainable moneymakers. To expand its routes, JSX said it’s going to add a new aircraft to its fleet every six weeks. These companies are cruising in growth mode, but they might have to lift prices to lengthen their runway. DEFI(NE) Heard on the Block: "layer 2" 🛣️ Like an elevated highway built over a cobblestoned road… Layer-1 blockchains like [ethereum]( and [bitcoin]( have gotten flak for slow transactions and high fees. Layer-2 networks are designed to be faster and cheaper: they let users make crypto transactions outside the main chains, batch them up, and then report them back to L1s. Arbitrum, a leading ethereum L2, is set to [launch]( a hotly anticipated token tomorrow that’ll give holders the ability to vote on changes to its network. What else we're Snackin' - [TikTalk]( TikTok CEO Shou Zi Chew is set to testify in front of US lawmakers tomorrow as officials debate banning the app. Yesterday Chew asked the platform's 150M US users to speak up in defense of the Tok. - [GamePop]( [GameStop]( reported a quarterly profit for the first time in two years. Though sales dipped, the brick-and-mortar chain cut costs by laying off employees and homing in on “operational efficiency.” - [SearchAI]( [Google]( opened a waitlist for its ChatGPT rival Bard. Last month [Microsoft]( incorporated ChatGPT into its Bing search engine in what’s seen as a big threat to Google's search dominance. - [Housed]( Existing-home sales jumped 14.5% last month as February year-over-year prices ticked down for the first time in 11 years. Meanwhile, mortgage rates fell last week ahead of spring (aka: peak home-buying szn). - [Pindont]( Google suspended Play Store downloads of Chinese shopping app [Pinduoduo]( after malware was spotted in some versions. Google didn't suspend Temu, the popular US version of the app. 🍪 Thanks for Snacking with us! Want to share the Snacks? Invite your friends to sign up [here](. Snack Fact Of the Day While 5.9M Americans quit or lost a job in January, 6.4M got hired [Read more]( Wednesday - Ramadan begins - Earnings expected from Chewy and Petco Authors of this Snacks own bitcoin and ethereum and shares: of Google, Disney, and Microsoft ID: 2806251 Robinhood Snacks newsletters reflect the opinions of only the authors who are associated persons of Robinhood Financial LLC (Member [SIPC]( and do not reflect the views of Robinhood Markets, Inc. or any of its subsidiaries or affiliates. They are for informational purposes only, and are not a recommendation of an investment strategy or to buy or sell any security, digital asset (cryptocurrency, etc) in any account. They are also not research reports and are not intended to serve as the basis for any investment decision. Any third-party information provided therein does not reflect the views of Robinhood Markets, Inc., Robinhood Financial LLC, or any of their subsidiaries or affiliates. 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