Good morning readers. Starbucks is stirring things up in the coffee world with its latest creation, Oleato – an olive oil-infused beverage hitting all U.S. stores today. Inspired by CEO Howard Schultz's visit to Italy, where he noticed locals enjoying olive oil in their daily drinks, Oleato made its debut in February 2023. Despite some initial skepticism, Starbucks is expanding the line. Oleato, meaning "with oil" in Italian, includes a latte, iced espresso, and a unique Oleato Golden Foam, a sweet cream infused with, you guessed it, extra virgin olive oil.

Olive oil in your coffee, anyone?

Let’s jump into today’s storylines.

In today’s digest:

• Ads are coming to Prime Video

• Headline Hustle: Neuralink tests brain tech on human for first time, Amazon terminates iRobot deal, SiriusXM buys rights to SmartLess podcast for $100 million

• World’s largest cruise ship fuels environmental concerns

• Pulse Points: What’s Trending

STREAMING

Amazon Prime meets ad time

Think your binge-watch sessions were sacred? Think again. As of Monday, Amazon Prime Video is introducing a dose of reality to its streaming utopia: advertisements. In a move mirroring the broader streaming industry, the ad-free days on Prime Video are numbered, and viewers longing to keep their streams uninterrupted will need to fork out an additional $2.99 per month.

It’s all about the green

In a climate where streaming services are continually striving to find new revenue streams, this decision by Amazon Prime Video reflects the broader industry trend of embracing ads and raising prices on ad-free tiers. Competitors such as Netflix, Disney+, Hulu, HBO Max, and Peacock have also adjusted their pricing structures recently, signaling a shift from subscriber acquisition to profitability. It seems that in the world of streaming, even superheroes need to pay the bills.

Amazon has defended its decision by arguing that including ads will enable them to continue investing in high-quality content, including popular programs like "Thursday Night Football."

• In 2022 alone, the company's content spending surged by nearly 30% to a whopping $16.6 billion.

• A recent Morgan Stanley report even predicts that Prime Video's ads could potentially generate over $3 billion in additional revenue in the coming year, with estimates soaring to $7 billion by 2026.

But this transition raises valid concerns among subscribers who may be less enthusiastic about ads being incorporated into their streaming experience. The delicate balance between maintaining a seamless viewing experience and generating additional revenue remains a point of contention in the industry.

Looking ahead…while this strategy may enable Amazon to continue investing in top-tier content, it also sparks questions about the user experience and the delicate trade-off between advertisements and subscription fees. As the streaming landscape continues to evolve, the choice between advertisements and a premium ad-free experience will undoubtedly be a critical factor for subscribers to consider.

Headline Hustle

🧠 Neuralink implants brain tech in human patient for first time. Neuralink, Elon Musk's neurotech startup, made history by successfully implanting its brain device in a human subject, who is now "recovering well." The FDA-approved clinical trial, named Telepathy, aims to empower those with severe paralysis, potentially revolutionizing communication for patients like Stephen Hawking. In the competitive brain-computer interface (BCI) industry, Neuralink faces rivals like Paradromics, Precision Neuroscience, and Synchron, with the first-to-market crown still up for grabs. This achievement marks a significant step towards commercialization in the BCI sector.

🤖 iRobot and Amazon call it quits, terminate acquisition agreement. Amazon has abandoned its planned acquisition of vacuum manufacturer iRobot due to insurmountable regulatory obstacles. The decision followed news that the European Union would not grant regulatory approval, causing shares of iRobot to drop by 10%. The European Commission expressed concerns that the deal would allow Amazon to hinder iRobot's competitors on its online marketplace, potentially leading to higher prices and reduced innovation. As a result, iRobot will focus on margin improvements, reduce research spending, and halt work on non-floorcare products. Amazon will pay a $94 million breakup fee for the terminated deal, originally valued at $1.7 billion.

🎙️ SmartLess podcast leaves Amazon for SiriusXM in $100 million deal over three years. Will Arnett, Jason Bateman, and Sean Hayes are leaving Amazon to bring their popular podcast "SmartLess" to SiriusXM in a groundbreaking three-year deal worth $100 million. SiriusXM secured exclusive rights to the hit podcast, along with advertising and distribution rights, content, and events. Although this represents a significant investment, "SmartLess" has a history of lucrative deals, with Amazon previously acquiring exclusive rights for $60-80 million in 2021. This move keeps the podcast accessible while offering exclusive benefits to SiriusXM subscribers, further strengthening the platform's podcasting presence alongside notable shows like "Conan Needs a Friend" and "Pod Save America."

ENVIRONMENT

Icon of the Seas sails into controversy

The world's largest cruise ship, the Icon of the Seas, recently set sail on its maiden voyage from Miami, Florida, creating quite a spectacle. This mammoth vessel boasts an astonishing eight "neighborhoods," seven swimming pools, six waterslides, and an impressive 20 decks, accommodating up to 7,600 passengers. Costing a staggering $2 billion to construct, it stretches nearly 1,200 feet from bow to stern and weighs a mind-boggling 250,800 metric tons. Royal Caribbean Group CEO Jason Liberty proudly hailed it as the "biggest, baddest ship on the planet."

But behind the glitz and glamour, concerns loom about its environmental impact. While the ship runs on liquified natural gas (LNG), touted as a cleaner alternative to traditional marine fuels, it raises some concerns due to its methane content, a greenhouse gas 80 times more potent than carbon dioxide. Critics argue that LNG-fueled ships may emit over 120% more life-cycle greenhouse gas emissions than marine gas oil, challenging its eco-friendliness.

Big picture: Amid the controversy, Royal Caribbean International emphasizes its commitment to scrutinizing energy efficiency and emission reductions for the Icon of the Seas. As this behemoth sets sail, it's clear that this floating wonder is not only a marvel of engineering but also a topic of ongoing environmental debate in the world of luxury cruising.

SNIPPETS

Pulse Points

• The Department of Justice charged two individuals and secured a guilty plea from a third for running a global $1.9 billion cryptocurrency Ponzi scheme called HyperFund.

• Alaska Airlines' jet part that detached midair likely lacked necessary bolts from Boeing's factory, with industry officials suspecting employee oversight during a 737 MAX 9 production process.

• Flutter, the parent company of FanDuel, made its debut on the New York Stock Exchange, presenting U.S. investors with an alternative to major sports betting competitor DraftKings.

• Netflix co-founder Reed Hastings has donated two million shares of his Netflix holdings, valued over $1.1 billion, as per a regulatory filing.

• A former IRS contractor received a five-year prison sentence for leaking tax returns of ex-President Donald Trump and numerous wealthy Americans, highlighting tax strategies of the ultrarich and sparking legislative uproar.

• The PGA Tour is close to selling part of its commercial business to a group of prominent U.S. investors, including sports industry billionaires like John Henry, Steve Cohen, and Arthur Blank, in response to the disruptions caused by the Saudi-backed LIV Golf league.

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