Morning Brew - ☕ Red envelopes

Netflix bids farewell to DVDs...
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September 29, 2023 View Online | Sign Up | Shop 10% Off

Morning Brew

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Good morning. Today is National Coffee Day, a holiday we are obligated to mention on account of the Faustian bargain we made with a mug to use it as our logo.

To celebrate, enjoy a free coffee from a breakfast chain, and while you wait for it to cool, reflect on the fact that the cup of coffee in your hand is one of about 3 billion being consumed around the world just today—a number that has nearly doubled over the past three decades and is expected to double again by 2050, per the FT.

Over the next two years, Starbucks is on pace to open a new store in China every nine hours.

Cassandra Cassidy, Sam Klebanov, Dave Lozo, Matty Merritt, Adam Epstein, Neal Freyman

MARKETS

Nasdaq

13,201.28

S&P

4,299.70

Dow

33,666.34

10-Year

4.576%

Bitcoin

$27,153.40

Meta

$303.96

*Stock data as of market close, cryptocurrency data as of 1:00am ET. Here's what these numbers mean.

  • Markets: Stocks jumped after unemployment data came in better than expected Thursday and treasury yields stabilized from three straight days of gains. Meta led a good day for tech giants as investors contemplated whether they could see themselves wearing the company’s AI-enhanced Ray-Ban smart glasses.
 

TV

Netflix’s DVD service is no more

Netflix DVD envelopes Justin Sullivan/Getty Images

After 25 years of stuffing red envelopes, Netflix will ship out its last DVD today.

It’s not a surprise: The business is no longer the cash cow it once was, and Netflix wants to cut costs where it can amid the expensive streaming wars. And yet, Netflix wouldn’t be what it is today without the help of DVDs. The company that now influences decisions at the highest levels of Hollywood was built atop those shiny silver discs.

In the beginning, there was Beetlejuice. The Tim Burton film was the first DVD Netflix sent in 1998, back when most Friday nights were spent going to Blockbuster…only to find all copies of A Bug’s Life were taken. Netflix rendered that blue-and-gold behemoth obsolete by making it easy to rent a DVD online and get it the next day, with no late fees or due dates. At the height of its DVD service, Netflix was the US Postal Service’s fifth-largest customer, processing 1.2 million DVDs weekly, according to the NYT. It generated $2.6 billion in profit between 2012 and 2019, which Netflix used to invest in streaming and make original content gems like The Unbreakable Kimmy Schmidt.

Now, it’s just a service that we used to know

While the end of the DVD service was inevitable—the company’s name all but foresaw that—there were still about a million paying customers sad to see it go. And for those loyal renters, Netflix offered a parting gift: They can keep their final discs.

To commemorate the occasion, we’ve compiled some of our all-time favorite DVD picks. We still love you, bouncing DVD logo.

  • Adam: The Lord of the Rings extended editions. The best behind-the-scenes content of all time. IYKYK.
  • Abby: The Umbrellas of Cherbourg because it deserves to be viewed on a bigger screen than my laptop.
  • Sam: The Parent Trap because the more Lindsay Lohans, the merrier.
  • Cassandra: Monk. It gets nostalgia points for being the first show I watched via Netflix DVD, and it stars my favorite actor, Tony Shalhoub.
  • Matty: Talladega Nights. I can’t be expected to remember every iconic line at all times.
  • Dave: The Avengers (1998). Because Ralph Fiennes and Uma Thurman are great together, and no other movie has ever come close when it comes to avenging.

CC

     

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WORLD

Tour de headlines

Joe Biden and Kevin McCarthy Illustration: Francis Scialabba, Photos: Getty Images

House GOP’s first Biden impeachment hearing flopped. Republicans in Congress opened their impeachment inquiry into President Biden yesterday, looking to establish that he was involved in his family’s foreign business dealings. But the GOP’s own witnesses, which included law professor Jonathan Turley and forensic accountant Bruce Dubinsky, testified that the existing evidence does not support impeachment charges. House Oversight Chairman James Comer, who’s leading the hearings, said he plans to continue the inquiry even if the government shuts down this weekend.

Yelp and Texas sued each other. The user review company preemptively sued Texas Attorney General Ken Paxton this week to protect its crisis pregnancy center label that says they “do not offer abortions or referrals to abortion providers.” Sure enough, Paxton then sued Yelp, arguing the label is misleading. Yelp denied that the label is deceptive or untruthful. Since the reversal of Roe v. Wade, conservative lawmakers have taken individual businesses to court to further abortion restrictions.

GameStop named Ryan Cohen its new CEO. The billionaire activist investor, who had been serving as the video game retailer’s executive chairman, will not receive a salary. Cohen first bought a stake in GameStop in 2020 and then joined its board the following year at the height of the meme stock frenzy. Its stock has since cooled off, but better-than-expected revenue in the second quarter may suggest Cohen’s plan to push deeper into e-commerce is starting to take effect.

CLIMATE

Saltwater is infiltrating the Mississippi River

New Orleans Mississippi Sean Gardner/Getty Images

Saltwater from the Gulf of Mexico is creeping into the Mississippi River, polluting the drinking water in Louisiana parishes and threatening to strike New Orleans. President Biden approved an emergency declaration for Louisiana this week, unlocking federal funds to deal with the salt onslaught.

Local officials are assuring residents that there will be plenty of bottled water to go around and imploring them to abstain from raiding supermarket aisles.

Why is Big Muddy getting salty?

  • A wedge-shaped layer of saltwater from the Gulf of Mexico is always present under the Mississippi’s freshwater. The river current normally pushes the saltwater downstream, keeping it near the mouth of the river.
  • But a lack of rainfall this summer has weakened the river’s usual flow, allowing the brine to move upstream.

Since the Mississippi is running low more frequently with climate change, the risk of repeated saltwater intrusions is only growing.

US Army Corps of Engineers to the rescue. The group is working to delay the saltwater’s encroachment by increasing the height of an existing underwater barrier. It’s also planning to relocate freshwater from further upriver.—SK

     

TOGETHER WITH CARIUMA

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SPORTS

The US–Europe rivalry hits the links

Illustration of two golf gloves holding up the ryder cup trophy Illustration: Francis Scialabba, Photos: Getty Images

If there were ever a morning for a continental breakfast, this would be it. While you were sleeping, American golfers began their Ryder Cup title defense against Europe at Marco Simone Golf and Country Club on the outskirts of Rome. Team USA dominated the 2021 tournament in Wisconsin—however, the US has not won a Ryder Cup in Europe since 1993.

The beloved golf tournament began in 1927 and is played every two years, alternating between the US and Europe.

How it works: Over three days, the US and European teams will compete against each other in a variety of “match play” formats to earn points. The team with the most points wins, but it’s all for bragging rights—there’s no prize money handed out.

Here’s a primer to get yourself familiar with the intercontinental rivalry.

Tale of the tape: United States / Europe

Odds: -115 / +100 (this means the US is slightly favored)

Number of golf courses: 17,000 / 9,000

Economic growth in the past 15 years: 82% / 6% (in the eurozone)

Mandatory time off: none / four weeks of paid vacation

Number of places named “Rome”: At least 20 / 1

Most famous detective: Benoit Blanc / Sherlock Holmes

Most famous invention: The Snuggie (2008) / Printing press (1440)

Best Batman: Michael Keaton / Christian Bale

DL

     

GRAB BAG

Key performance indicators

Costco gold bars Francis Scialabba

Stat: The perfect Costco haul: 4,000 dishwasher pods, a 700-ounce bottle of Kirkland vodka, and a 24-karat gold bar. The bulk seller is now listing the precious metal on its website for members only at about $1,900 a pop. Even with a limit of two bars per member, Costco often sells out a few hours after putting them online. The value of gold has jumped over 15% in the last year, but Costco’s real interest seems to be attracting survivalists who might also buy some supplies for their panic rooms, like this bucket of 150 dried meals.

Quote: “To hear an ex-president say you’re off by a few details…I thought I was off by a lot! The fact that he said that scared the f*ck out of me.”

Barack Obama: 44th president and now Hollywood script doctor? Mr. Robot creator Sam Esmail told Vanity Fair that Obama, whose production company, Higher Ground, is behind Esmail’s upcoming disaster film, Leave the World Behind, leveraged his experience as president to provide some sharp notes that helped “ground” the movie in reality. “He wanted to see a really good film,” Esmail added. The former POTUS might just know what he’s doing—American Factory, produced by Higher Ground, won the Oscar for best documentary in 2019.

Read: The FTX trial is bigger than Sam Bankman-Fried—and potentially very embarrassing for all of crypto. (The Verge)

QUIZ

Highly caffeinated quiz

New Friday quiz image

Getting a 5/5 on the Brew’s Weekly News Quiz has been compared to your friend pushing back dinner when you’re already running late.

It’s that satisfying. Ace the quiz.

NEWS

What else is brewing

  • The United Auto Workers union reportedly plans to expand strikes at GM, Stellantis, and Ford again if talks don’t progress today.
  • FC Barcelona has been charged with sending more than $7 million in bribery payments to companies linked to the former vice president of Spanish football’s refereeing committee.
  • Epic Games, the maker of Fortnite, is laying off 870 employees, or 16% of its workforce.
  • McMurdo Station in Antarctica will soon ban its bars from serving alcohol amid growing concerns over sexual misconduct at the remote research facility.
  • Michael Gambon, best known for playing the wizard Dumbledore in the later Harry Potter films, died at 82.

RECS

Friday to-do list

Watch: Twenty great under-the-radar shows like The Leftovers and The Knick to stream while we wait for Hollywood to get up and running again.

Bonus watch: Treat yourself to a deeply unsettling double feature this weekend with “Saw Patrol”—Saw X followed by PAW Patrol: The Mighty Movie.

Play: Marvel at these big-budget playrooms in luxury homes, which include climbing walls, foam pits, and whatever a “fantasy reading forest” is.

Nerd out: The emerging “whom of which” phrase tells us a lot about how syntax shapes language.

Check yourself: Wondering if you’ve got enough insurance—or if you’re paying too much? Take Ramsey Solutions’ 5-minute Coverage Checkup quiz to see what you (really) need.*

*A message from our sponsor.

GAMES

The puzzle section

Picdoku: Turn lead into gold in today’s Picdoku, which swaps out numbers for alchemical symbols. Play it here.

Friday puzzle

STINK, DELIVER, STRESSED, REWARD, WARTS

The above words have something in common. Which of the following words belongs in the same group?

SPREE, IMITATE, SHIRT, COUNTED, LAGER

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ANSWER

Lager, because all of these words form new words when reversed (regal, knits, reviled, etc.). Source

Word of the Day

Today’s Word of the Day is: Faustian, meaning “made or done for present gain without regard for future cost or consequences.” Thanks to Chris M. from the UK for the suggestion. Submit another Word of the Day here.

         
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