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

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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.

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

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.

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)

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.

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