🍋 Netflix Got No Chill

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Hope y'all had a great Christmas! Adidas is stuck with more than $500 million of inventory of Yeezy sneakers after parting ways with Kanye West. Caroline Ellison faced 110 years behind bars before pleading guilty and cooperating with authorities.

Winter storms forced airlines to cancel over 10,000 flights. Michael Bloomberg wants to buy either the Wall Street Journal or Washington Post. TikTok employees apparently inappropriately accessed user data. And more Gen-Zers are getting on the side-hustle game, with 2023 poised to be a record one for side gigs.

If you are interested in getting in front of a smart, young audience of business leaders, bankers, investment professionals, policy influencers of over 500,000 people, then fill out this form, we’ll be in touch.

1. Story of the Day: Netflix Ending Password Sharing

Netflix has a New Year's Resolution for 2023 that is sure to make you cringe - how to make more money without annoying their loyal customers. According to a recent report, the streaming giant plans to implement a new password-sharing policy in the US next year. While Netflix used to tweet that ‘love is sharing a password’, it seems they've now realized that love doesn't pay the bills.

In the past, Netflix has turned a blind eye to the up to 100 million users sharing passwords to watch Netflix. But after a down year, executives are starting to feel the heat from investors. This new policy could bring in an estimated $721 million in revenue for Netflix, but it's also a risk as consumers may not be too happy about it.

Charging users who share passwords is likely to ruffle some feathers, and Netflix risks alienating its customer base and ruining years of goodwill they've built up. Enforcing their "no password sharing" rule has proven to be a tricky business. Should college kids be allowed to share their parents' passwords? And what about users with multiple homes or who travel a lot? It's all very complicated.

It's easy to see how this new demand could cause a significant number of consumers to ditch Netflix entirely, rather than pay more money. In an effort to avoid a full-blown customer revolt, Netflix is reportedly considering gradually increasing the pressure on password sharing.

Takeaway: As the streaming industry becomes more competitive, Netflix's password-sharing crackdown is a huge gamble. Some analysts think it's like a caffeine jolt for revenue - a temporary fix that could backfire and lead to many users canceling their subscriptions.

With so many competitors like Amazon, Hulu, and HBO out there, it's easy for people to just drop Netflix and go elsewhere. But if Netflix goes through with this plan and it actually works, it could set a trend in the industry and suddenly we'll see Hulu and HBO Max implementing similar policies. So it's up to consumers to vote for what we’ll pay for with our wallets.

2. Markets Rundown

If you want access to Wall Street insider interviews, industry deep-dives, premium research/resources and weekly Knowledge Drop newsletter, check out our Insiders membership.

Stocks closed higher on Friday, but fell for a third straight week.

Movers & Shakers

• (+) Alphabet ($GOOGL) +2% because YouTube will start streaming NFL games.

• (–) Nutanix ($NTNX) -8% after Hewlett Packard reportedly ended buyout talks to acquire the cloud computing company.

• (–) Mission Produce ($AVO) -15% because the avocado producer is seeing a sharp decline in avocado prices.

Private Dealmaking

• Advent bought a majority stake in Suven Pharma for $762 million

• Divergent Technologies, a 3D automobile printing company, raised $100 million

• HistoSonics, a kidney tumor-blasting ultrasound startup, raised $85 million

• ImagenAI, an AI photo editing tool, raised $30 million

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Top Reads

• The money party is over (Vox)

• Insomnia is an $8 billion business (CNBC)

• ChatGPT and how AI disrupts industries (HBR)

• Wall Street and Fed flopped trying to predict 2022 (WSJ)

• Supply chains upended by Covid are back to normal (Fox)

• What is a $250 million bond? (Axios)

• Inflation drove up the prices of Christmas dinner and eggnog (Axios)

• Stock selloff hits life insurer’s fastest-growing product (WSJ)

• Mark Cuban weighs in on both Bitcoin and gold, says both are ‘store of value’ (Fox)

4. Book of the Day: The Euro

In The Euro, Nobel Prize–winning economist and best-selling author Joseph E. Stiglitz dismantles the prevailing consensus around what ails Europe, demolishing the champions of austerity while offering a series of plans that can rescue the continent—and the world—from further devastation.

Hailed by its architects as a lever that would bring Europe together and promote prosperity, the euro has done the opposite.

As Stiglitz persuasively argues, the crises revealed the shortcomings of the euro.

Europe’s stagnation and bleak outlook are a direct result of the fundamental challenges in having a diverse group of countries share a common currency—the euro was flawed at birth, with economic integration outpacing political integration.

Stiglitz shows how the current structure promotes divergence rather than convergence.

“The euro was born with great hopes. Reality has proven otherwise.”

*****

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5. Short Squeez Picks

• In search of an attainable New Year’s resolution

• 3 tricks to fall asleep when your mind is racing

• 5 hacks to work faster than 94% of people

• Steve Jobs said the best managers don’t want to become managers - science says he’s right

• How to work out in 15 minutes with no equipment

6. Daily Visual: Change Your Definition of Success

Source: @lizandmollie

7. Daily Acumen

"Risk has two stages.

First, when it actually hits.

Then, when its scars influence our subsequent decisions.

The recession, and the lingering pessimism that does as much damage."

Source: Collab Fund

8. Memes of the Day

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