…and AMC ditches streaming to lean into what it knows best
| Alexa pays up (Brandon Thibodeaux/Getty Images) | |
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Yesterday's Market Moves | | Dow Jones
33,062 (+0.47%) | S&P 500
4,221 (+0.99%) | Nasdaq
13,101 (+1.28%) | Bitcoin
$26,882 (-1.25%) |
| Dow Jones
33,062 (+0.47%) | S&P 500
4,221 (+0.99%) | Nasdaq
13,101 (+1.28%) | Bitcoin
$26,882 (-1.25%) |
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Hey Snackers, Way worse than fishing your phone out of the toilet: a government official in India was suspended after ordering that an entire dam be drained to retrieve his phone. He'd dropped it in while taking a selfie (#relatable). The S&P 500 and Nasdaq closed at their highest levels since August as investors reacted to the US House passing a bill to suspend the debt ceiling. Last night, the Senate also passed it and sent it to Biden's desk. | |
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Amazon agrees to settle children's-privacy charges for $25M as regulators sleuth out data misuse | Servers get served… This week Amazon agreed to settle FTC charges that it illegally stored children's data (like voice recordings and locations) gathered from Alexa devices. The commission said that 30K Amazon employees had access to Alexa transcripts in 2018 and 2019, and that children's data was used to train Alexa to better understand kids' lingo. That would be a violation of the Children's Online Privacy Protection Act, or COPPA. Amazon denied it broke the law. Pay up: If the settlement is approved, Amazon will pay a $25M fine and be required to delete any saved children's data. Separately: Amazon agreed to pay $5.8M in refunds to Ring customers to settle FTC allegations that employees had illegally viewed Ring footage. Amazon said it had fixed the issue before the commission looked into it.
The kids aren't alright… While $25M is a drop in the bucket for Amazon, it's part of a bigger regulatory push to crack down on misuse of kids' data by tech giants. Last year, "Fortnite" maker Epic Games settled with the FTC for $520M, partly over claims of unlawfully collecting children's info, and Google agreed to pay a $170M penalty for YouTube channels harvesting kids' data. Thinking ahead: Several recent bills aim to bar platforms from targeting ads to under-13-year-olds, mostly by setting and enforcing age restrictions. Red flag: The bills seek to protect kids' mental health, not just their data. But experts warn that age-verification processes could require more info to be shared with platforms.
|  | THE TAKEAWAY |
| It's supposed to be user data, not used data… Big Tech's once unfettered access to sensitive info is being reined in. The EU and California have passed sweeping data-privacy laws that restrict digital platforms' ability to gather data without users' permission. Four more US states will start enforcing similar laws this year. | |
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AMC shutters its streaming service as theaters push blockbuster-size plush-grades | Heartbreak not feelin' so good… AMC said yesterday that it would close the curtain on its streaming service. Launched in 2019, AMC Theatres on Demand let users rent or buy movies to watch at home. The platform likely came in handy during the pandemic when theaters were closed, but now AMC says it's focused on "making movies better by enhancing the theatrical experience." If you can't join 'em… beat 'em. US movie chains are charging ahead to deck out the in-theater experience, since butts-in-seats still bring in more $$ than couchbound streams. In addition to dropping top dollar on new IMAX screens (cost: $1M, not including install), theaters are splurging on plush-grades like heated seats that move with on-screen action, fans who blast viewers during chase scenes, and on-call dinner servers. In February, AMC even rolled out tiered seat pricing (picture: paying extra for center row). The premiumization push seems to be paying off: Seat-side sushi: Theaters are charging up to 65% more for tickets in fancified theaters, easily topping $20 apiece. More from less: Upgraded screens are expected to bring in 17% of theaters' revenue this year, up from 9% in 2019. Some pain, some gain: AMC's losses are shrinking ($178M last quarter versus $266M a year earlier).
| | THE TAKEAWAY |
| Experiences command a premium… After the streaming surge and lockdowns knocked theaters on their heels, chains are trying a luxury-driven comeback. The US box office hit $7.5B last year (up from $2.3B in 2020), and could top $9B this year. Meanwhile, studios like Warner Bros. and Disney have cooled on plans to release films straight to streaming as cineplexes draw more customers off the couch and into heated, reclining theater thrones. | |
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| 🌶️ Spicy… The DOJ said it might drop some of the charges against Sam Bankman-Fried if the Bahamian gov't says they violate the terms of his extradition to the US. The FTX founder is awaiting trial over his role in the exchange's implosion. 📸 Flashy… Charles Schwab and Nomura are among the Wall Street titans backing or building their own crypto companies. In a post-FTX world, finance institutions are hoping that customers will trust them more than they do crypto-native firms. 🪙 Coins… Tether (aka: USDT) now has a record $83B+ market cap. Tether's share of the stablecoin market grew this year after regulators ordered its competitor to stop minting BUSD (a Binance-branded stablecoin). | |
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What else we're Snackin' | Loans: The Senate voted to repeal President Biden's student-loan-forgiveness plan to cancel up to $20K in debt. The White House is expected to veto, but the plan's on hold anyway as SCOTUS debates it. Metout: Meta's threatening to pull news from its social apps in California if the state passes a law that would require tech platforms to compensate publishers. A similar federal bill is sitting with Congress. Play: Chewy shares popped 23% after it posted a surprise profit as Americans continued to splurge on their furry friends. Chewy's Autoship sales (think: monthly kibble delivery) hit a record. Check: As college-tuition costs skyrocket, more high-school grads are skipping bachelor's degrees to go straight to work in industries like hospitality, where wage growth has outpaced other sectors. Hold: Nordstrom topped expectations, fueled by strength at its discount Rack stores, but total sales fell 12% as shoppers curbed discretionary splurges. Macy's slashed its annual outlook by nearly $1B.
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Snack Fact Of the Day | The median age of the world's billionaires is 67 | | |
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Friday | Authors of this Snacks own shares of: Amazon, Disney, and Google | |
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Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate... See more | |
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