MoviePass: Like Netflix for Theaters

Vulture: “The subject of the week in Hollywood is MoviePass, a company from the co-founder of Netflix and Redbox that’ll let you go to the movies once a day, every day, for just $9.95 a month — just barely more than the average price of a single ticket, and less in cities like New York and Los Angeles. While MoviePass has been around for a little while now, it’s in the news at the moment because of that new, comically low price point, as well as the controversy it’s provoking among theaters.”

“What the company hopes to offer over time is a large base of proven, frequent moviegoers — and the proprietary information that comes from having access to their every ticket-buying decision. It’s a Big Data move, one that will utilize investor money to subsidize a money-losing business model in the hopes that other revenue streams will eventually open up, most likely coming from the likes of AMC, who might one day offer MoviePass tickets at a discount and use the consumers’ behavioral information to improve advertising, curation, concessions, and so on.”

“MoviePass’s challenge is that it threatens to cut into the revenue stream of Hollywood’s most loyal customer, with the added, ethereal benefit of ‘data,’ a concept with which theaters already have a complicated relationship, considering the struggles of tracking and the unpopularity of in-theater advertising. And ultimately, it isn’t good for anyone in the business of movie-making if people become used to the idea that they should be entitled to all movies for ten bucks a month. Just look at the music industry.”

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Pizza Al Taglio Doesn’t Cut Corners

The Wall Street Journal: “A number of New York pizza makers are now offering the classic treat with different geometry: Their ‘pies’ aren’t pie-shaped. Instead, they are based on a rectangular-shaped style, known as pizza al taglio, that is popular in Rome. Further distinguishing this version: Slices are often served at room temperature. And when it comes to cutting the pizza, forget about the traditional wheel-style cutter. This is a pizza best divided with a scissors.”

“To some extent, the interest in pizza al taglio speaks to the appetite New Yorkers have for a broadening array of pizza styles, circular or rectangular-shaped. The city has seen restaurants offering everything including Detroit-style pizza and the classic Chicago deep-dish version. And that is not to mention the Sicilian pie, another rectangular style, that has been a mainstay at New York pizzerias for decades.”

“Moreover, other Roman styles are also finding their way to the city. Pinsa Lab, which opened earlier this year in Brooklyn, specializes in an crispy circular style, known as pinsa, that is said to date back to ancient times … But pizza al taglio has special appeal for a host of reasons, say fans. Some like the fanciful toppings that are often used: At Fornino, for example, the pizza al taglio comes in versions with everything from heirloom tomatoes and goat cheese to radicchio and figs.”

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Novo Oh-No: ‘New & Improved’ Doesn’t Sell

The Wall Street Journal: “Danish drug giant Novo Nordisk is living through a corporate nightmare that any CEO might recognize from business school. After the company concentrated on making essentially one product better and better—and charging more and more—customers have suddenly stopped paying for all that improvement. The established versions are, well, good enough.”

“Doctors, health-plan managers and insurers all have balked at paying for Novo Nordisk’s newest version of its insulin. Clinical trials show it works as promised in controlling diabetes and delivers significant side benefits compared with its predecessors. But for many customers, all that isn’t enough to warrant paying more—because the older drugs on the market already work pretty well, too.”

“Common, deadly ailments, such as asthma, high cholesterol and heart disease, were the focus of the pharmaceutical industry during a golden age of drug launches in the 1990s. Now, building on those advances has proven costlier and more complex, and usually results in smaller gains. Incrementally improved medicines are harder to sell at the prices needed to cover their development costs.”

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Ambient Computing: Invisible & Omnipresent

Steve Vassallo: “Slack and Airbnb—like Pinterest, Instagram and Kickstarter—are recent successes founded by designers, people who are devoted to the practice of building impeccably considerate technology. Design is the key to building the next great wave of companies.”

“I think we’re entering the age of ‘ambient computing,’ when personal technology will become invisible and omnipresent. Augmented reality, artificial intelligence, robotics, drones, the Internet of Things, and other nascent tech will fade into the background of our lives. Technology will no longer come in the form of gadgets.”

“In this new era, design will be ever more critical to how we build and use our technology. The 21st century will be the century of the designer founder, when core value for businesses is created by entrepreneurs who have a deeper, more intuitive sense for the human condition.”

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Impossible Burgers: Food is not an App

The New York Times: “One of the chief selling points of the Impossible Burger, a much ballyhooed plant-based burger patty, is its resemblance to meat, right down to the taste and beeflike ‘blood’ …. Now, its secret sauce — soy leghemoglobin, a substance found in nature in the roots of soybean plants that the company makes in its laboratory — has raised regulatory questions. Impossible Foods wants the Food and Drug Administration to confirm that the ingredient is safe to eat. But the agency has expressed concern that it has never been consumed by humans and may be an allergen.”

“Impossible Foods can still sell its burger despite the F.D.A. findings, which did not conclude that soy leghemoglobin was unsafe. The company plans to resubmit its petition to the agency.” Rachel Konrad, a spokeswoman for Impossible Foods, states: “The Impossible Burger is safe. A key ingredient of the Impossible Burger — heme — is an ancient molecule found in every living organism.”

“Impossible Foods is finding out what happens when a fast-moving venture capital business runs headlong into the staid world of government regulation. Investors like Bill Gates and Khosla Ventures have poured money into a variety of so-called alt meat companies. Silicon Valley has noble goals, applying technological solutions to address major issues like climate change, farm animal welfare and food security. But food is not an app. It is far more heavily regulated by governments and much more heavily freighted with cultural and emotional baggage.”

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Amazon’s Secret: 19 Phantom Brands

Quartz: “Amazon is selling products across a wide array of categories, using a host of brands that do not exist outside the confines of amazon.com and do not make it clear that they are Amazon-made products. Trawling through over 800 trademarks that Amazon has either been awarded or applied for through the US Patent and Trademark Office (USPTO), Quartz identified 19 brands that are owned by Amazon and sell products or have product pages on amazon.com.”

The Amazon brands include: Arabella (Lingerie); Beauty Bar (Cosmetics); Denali (Tools); Franklin & Freeman (Men’s shoes); Happy Belly (Fresh food); James & Erin (Women’s clothing); Lark & Ro (Women’s clothing); Mae (Underwear); Mama Bear (Baby products); Myhabit (Consumer goods); North Eleven(Women’s clothing); NuPro (Tech accessories); Pike Street (Linen); Scout + Ro (Kid’s clothing); Single Cow Burger (Frozen food); Small Parts (Spare parts); Smart is Beautiful (Clothing); Strathwood (Furniture).

“The only indication that any of these other brands might have an affiliation with Amazon is the fact that their company pages … say that their products are ‘exclusively for Prime members.’ It’s not clear that they’re exclusive because they are Amazon products, rather than products from companies that have struck deals with Amazon … It’s possible Amazon has other brands on its site that it hasn’t yet trademarked.”

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Meal-Kit Meltdown: DIY Meals Are Cooked

The Wall Street Journal: “The promise of meal kits was to finally make cooking easy enough that Americans would actually do it. Proponents hoped that a cooking revival also could ease the nation’s obesity crisis—a way to reclaim control of what we eat from the big food manufacturers and restaurant chains … the amount of cooking required has apparently been too much, even for the farm-to-table crowd. (So much chopping!) Industry analysts believe that meal-kit purveyors are having trouble retaining customers.”

“The companies are only now starting to acknowledge the truth about the American home cook. Blue Apron recently introduced recipes that are faster to prepare. Amazon and other more recent entrants such as FreshRealm, Gobble and Terra’s Kitchen are going further, dialing back the prep work to almost zero.”

“Americans talk a good game about the importance of home cooking and family meals, but we still want convenience above all. To succeed, meal kits won’t just have to be easier than starting from scratch; they will have to be as easy as takeout.”

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Retrocycles: How Indian Throttles Harley

The New York Times: Harley-Davidson “now faces perhaps its most trying challenge in decades. Polaris, an established American company with manufacturing know-how and a revered motorcycle brand in Indian, is quickly making big strides … Indian’s sales grew 17 percent in the second quarter of this year, while Harley’s sales shrank nearly 7 percent. Overall sales for large-displacement bikes, the kind that Harley specializes in, shrank 9 percent in the second quarter of this year.”

“The rebirth started well, with attractive bikes earning positive reviews from enthusiast publications … All Indian motorcycles are built in Spirit Lake, Iowa. While its bikes like the Scout and the just-released Scout Bobber are aimed at younger buyers, most models revel in heritage, with styling and names that hark back to the company’s prewar glory days. They represent, as Karl Brauer of Kelley Blue Book, an auto research firm, put it, ‘a cool theme married to a modern chassis’ and particularly appeal to buyers with a ‘what have you done for me lately’ outlook on brand loyalty.”

“Inevitably, Indian’s retro approach makes the brand a head-to-head competitor for Harley-Davidson, offering bikes in the touring, cruiser and midsize classes as well as the popular bagger category, or bikes carrying saddlebags but not the full windscreen and gear of a long-distance touring machine … To be sure, there is little chance that Indian will run Harley-Davidson out of business anytime soon. Harley’s sales last year, some 260,000 motorcycles worldwide, generated revenue of $6 billion.”

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$1,400 iPhone & The Veblen Effect

Christopher Mims: “The launch of a pricey new iPhone has big implications for Apple’s financials, and it also bodes well for Apple’s continued dominance in mobile phones. Here are five reasons for Apple to go big, price-wise:” 1 Halo Effect: “An ultraexpensive edition of the iPhone makes sense as a shot in the arm for the whole brand … 2 Crazy New Tech: A big reason companies have halo products is that they give them a way to test new technologies.” 3 Supply & Demand: “If Apple’s high-end iPhone is aimed at a new segment—people willing to pay more than $1,000 for a phone—Apple can charge whatever it likes to balance supply and demand for the device, rather than worrying about whether increasing the price will hurt its overall market share.”

4 Average Selling Price: “With a phone priced upward of $1,400, Apple would have the opportunity to move the single most important metric on its balance sheet: the average selling price of a new iPhone.” 5 The Veblen Effect: “The final reason a pricey iPhone makes sense is that, paradoxically, the more expensive Apple makes the device, the more people will lust after it. Conspicuous consumption was first described in ‘The Theory of the Leisure Class’ by the economist and sociologist Thorstein Veblen, who singled out products that, contrary to logic, sold better when their prices went up.”

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Aldi Conquers With Cromwell Gin

Business Insider: “The £9.97 Oliver Cromwell London Dry Gin from Aldi won a gold medal at the International Wine and Spirits Competition (IWSC) this week. In doing so, the budget retailer’s gin beat bottles costing up to four times the price in the blind taste test.”

“A spokesperson at the International Spirits Challenge said: “The display of awards achieved by Aldi this year at the International Spirits Challenge was fantastic. They consistently showcased high quality products in the blind tastings, which demonstrates that you don’t have to compromise on price to enjoy great tasting drinks.”

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