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Netflix's last red envelopes
Good morning, avid cinephiles. This is your Stock Market Rundown for October 2nd, 2023. Thanks for joining me for another week of hijinx. Let’s get started:
TODAY’S TOP STORY: THE LAST RED ENVELOPES 🍿
Globally, Netflix offers 17,000 movies and TV shows, which is enough to keep you binge-watching well into the next century.
But when Netflix went live in 1998 it only offered 900 titles—and, at the time, that represented basically the entire published catalog of DVDs.
The founders of Netflix were two tech-company coworkers who met while carpooling to their software job. Coveting the success of Jeff Bezos, they resolved to build their own “Amazon of something”, and selected DVDs. They chose wisely.
In this era of instant downloads, it’s an analog throwback to recall how Netflix started out mailing DVDs to customers’ houses. Movie buffs were stoked to get a Netflix red envelope containing some epic 90s cinema like Jurassic Park, Rush Hour, or Air Bud.
Despite streaming conquering the entertainment universe, that legacy DVD business has cranked on, with a million Luddites still getting DVDs by mail. But over time, as you might guess, the DVD-by-mail business became a rounding error on the income statement.
So, after 25 years of running it, Netflix is winding down its DVD service. As a bonus for loyal subscribers, they’ll be able to keep the final discs that get sent out. Go ahead, use them as beer coasters, Netflix doesn’t care.
Now, with the DVD business defunct, folks living in a Unabomber cabin out in the woods will just have to finally get their WiFi set up, so they can stream Squid Game with the rest of us.
SO WHAT ELSE IS GOING ON?
Adidas is pushing the boundaries of what consumers will pay for sneakers with a new $500 running shoe. Let’s see whether runners are willing to spend the equivalent of their monthly grocery budget on a pair of kicks, to trim a few seconds off their marathon time.
The Hollywood writer’s strike has ended with writers winning concessions that include contractual protections against being forced to use AI. What a relief to know that the 33rd, 34th, and 35th movies in the Marvel franchise will be wholly original.
With food price inflation rampant, the most desirable card in your wallet isn’t an Amex Black Card or Chase Sapphire Reserve… it’s your Costco card. You’ll pay a bit more for your privileges soon: membership fees are getting a hike.
Electric vehicles were a record 8% of new-car sales this quarter, with 300,000 driving off dealer lots. Sounds like EV sales are accelerating faster than a Tesla self-driving into a tree.
That’s it for today, my friends. Have a fabulous start to your week, and I’ll see you tomorrow morning. Yours in capitalism, The Axe