Good morning. It's the end of an era no one knew still existed: Netflix announced yesterday that it would stop mailing DVD rentals—the business that started it all 25 years ago. Some Netflix DVD rental facts as we say goodbye: - An estimated 1.1 million–1.3 million people subscribed to the DVD service last year, generating $145.7 million in revenue for Netflix (not the worst biz).
- The first DVD Netflix ever sent was Beetlejuice in 1998.
- The most frequently requested DVD was The Blind Side.
We'll have more on Netflix's streaming efforts later in the newsletter. —Neal Freyman, Matty Merritt, Sam Klebanov, Cassandra Cassidy | | | |  | Nasdaq | 12,153.41 | | |  | S&P | 4,154.87 | | | | | Dow | 33,976.63 | | | | | 10-Year | 3.578% | | | | | Bitcoin | $30,386.61 | | | | | Goldman Sachs | $333.91 | | | | *Stock data as of market close, cryptocurrency data as of 3:00am ET. Here's what these numbers mean. | - Markets: Wall Street had all of the excitement of a nil-nil draw yesterday, as the major stock indexes barely budged despite more earnings reports rolling in. In one closely watched earnings report, Goldman Sachs's profits took a hit from a slowdown in dealmaking and the partial sale of its Marcus loan portfolio.
| | | | Dominion CEO John Poulos and his lawyers are very happy indeed. Alex Wong/Getty Images Right before starting its hugely anticipated libel trial, Fox News told Dominion Voting Systems, "How about we pay you $787.5 million and we not do this." And Dominion, which had sued it for $1.6 billion, replied, "You've got a deal." So, the two sides shook hands in what appears to be the largest known media defamation settlement in US history. A settlement of this magnitude reflects the gravity of the case Dominion, which makes electronic voting machines, sued Fox News for defamation, accusing the network of knowingly pushing baseless claims that Dominion helped rig the 2020 presidential election in Joe Biden's favor. The judge presiding over the case had already ruled that Fox News's statements about Dominion's role in the 2020 election were false. But under the US' high bar for defamation, Dominion would also have to prove that Fox News knowingly lied to its audience or showed a reckless disregard for the truth. What does this settlement mean? For Fox, it's a substantial check to write but not debilitating (equivalent to nearly 20% of its cash on hand). More importantly, by settling, Fox avoids a trial where it would have to send its chairman, Rupert Murdoch, and star hosts like Tucker Carlson out to the witness stand, where ugly things could be revealed about its newsroom operations. Fox also doesn't need to make an on-air apology as part of the settlement, according to the WSJ. For Dominion…well, we'll just let the $787.5 million do the talking, considering the company generates less than $100 million per year in sales, per Axios's Dan Primack. For democracy…critics of Fox News were universally disappointed that the case didn't go to trial. They say that in pushing former President Trump's false "rigged election" narrative, Fox News helped foment the distrust of elections that led to the Jan. 6, 2021, attack on the Capitol—and this settlement doesn't hold the network accountable. Looking ahead…Fox News is not out of the legal woods yet. It's facing a $2.7 billion defamation lawsuit from another election tech company, Smartmatic, over claims similar to Dominion's. Last month, a NY judge allowed the case to proceed.—NF | | Are account minimums, commissions, and piles of other fees holding you back from dipping your toes into the tides of trading? With Fidelity mobile, you can start trading stocks quickly, easily, and commission-free. And get this: You can open a retail brokerage account with no account mins or fees. Really. Fractional shares trading lets you nab the stocks and ETFs you wanna buy for as little as $1. And if you'd like a li'l guidance, Analyst Ratings offer stock opinions from independent experts to help you feel confident about your pick. The possibilities are suddenly endless, and Fidelity designed 'em that way. Start here. | | Kamil Krzaczynski/Getty Images  It's déjà vu all over again for Southwest. The airline temporarily grounded all its flights across the US yesterday after it suffered "intermittent technology issues." The brief disruption was a far cry from the total meltdown it experienced over the winter holidays, but more than 1,800 flights were delayed, and it's not a great look for a company trying to restore trust with passengers. Following the holiday debacle, Southwest pledged to upgrade its crew-scheduling software and boost staff to prevent future disruptions.
 Only 10 EVs now qualify for the full tax credit. New restrictions on which electric vehicles qualify for the full $7,500 tax credit went into effect yesterday, and just 10 electric and plug-in hybrid vehicles are eligible for the full amount. The new rules are intended to incentivize carmakers to source their raw materials and batteries from North America or a US trade partner—but in doing so, the number of eligible vehicles has been cut by ~50%. The list of EVs that qualify for the full $7,500 will grow later this year, though, as more models hit the market.
 Reddit wants AI companies to pay up. The social network said it'd start charging companies that want to tap into its conversations to develop AI models. OpenAI says that ChatGPT is partially trained on Reddit data, while Google's Bard chatbot also got smart thanks to Reddit convos (same). In an interview with the NYT, Reddit CEO Steve Huffman called Reddit's data "really valuable…but we don't need to give all of that value to some of the largest companies in the world for free."
| | Love Is Blind/Netflix Exactly one year ago, Netflix dropped the bombshell that it had lost subscribers for the first time in 10 years, leading to a nearly 35% stock wipeout the next day. Fast forward to April 2023, and the streamer is still as shaky as Micah and Paul's relationship post-pod. - Despite the launch of its $6.99 ad tier to attract more users, Netflix added 1.75 million net subscribers, about 500,000 short of expectations.
- The streamer also said it won't roll out its highly anticipated program to limit password sharing in the US until Q2. Leeches of the family, rejoice!
Netflix's stock was flat after it released its earnings, which…we guess is progress from last year. Big picture: While still the dominant streaming service in a crowded field, Netflix is finding wins elusive. It botched the Love is Blind live reunion on Sunday, which showed it's not prepared to stream live events as its competitors have done successfully. Plus, Netflix's sports docuseries about golf and tennis intended to build off of its Formula One hit are not remotely close to as popular. Soon, it won't even have its DVD rental service to fall back on. But the password-sharing crackdown, when it happens, could give Netflix that much-needed boost in new subscribers. The company believes that 100+ million people are watching on an account they don't pay for.—MM | | TOGETHER WITH SURVEYMONKEY | | Don't lose zzz's over the big Q's. Stressin' about your marketing strategy? Whether you wanna understand your customers, find answers as a team, or just make sense of the noise, SurveyMonkey's expert-written surveys and AI-powered platform help cut through the chaos and highlight what matters to the people who matter. Try it. | | Anadolu Agency/Getty Images What could be the most populous country on Earth just got its first Apple Store. No, we're not talking about China. It's India… Apple CEO Tim Cook was in Mumbai yesterday to cut the ribbon on an enormous brick-and-mortar space, and a second Apple Store will open in Delhi tomorrow. Apple's physical retail debut in India's two biggest cities is a landmark moment for the company and the booming country. According to UN data, India's population will surpass China's sometime this year, and Apple sees a sea of future customers in India's more than 600 million smartphone users. Though the notoriously budget-busting iPhone is not the go-to for most Indians, the Apple logo increasingly features in the mirror selfies of India's middle- and upper classes. - Sales of the iPhone in India hit a record in the first three months of 2023, growing by almost 50% over the same period last year.
And India is not just becoming a bigger consumer market for Apple products; it's also making them: The latest iPhone is produced there, and Apple's main manufacturing partner, Foxconn, recently invested $700 million in an Indian manufacturing facility. Zoom out: Along with Apple, Google and Samsung are also expanding their production footprint in India.—SK | | Alyssa Nassner Stat: There are as many millionaires in New York City as there are people living in Anaheim, California. According to a report from investment migration firm Henley & Partners, the Big Apple is home to 340,000 millionaires and has retained its title of the wealthiest city in the world, boasting ~50,000 more millionaires than second-place Tokyo. The Bay Area has more billionaires than NYC, though, with 63 to NYC's 58. Quote: "AI is not photography. Therefore I will not accept the award." German artist Boris Eldagsen wanted to make a statement about how the art world was not prepared for AI, and, oh, he did. His photograph won a prize at the prestigious Sony World Photography Awards, but he turned it down after revealing he generated the image using artificial intelligence. Eldagsen said his ploy was intended to accelerate the debate about "what we want to consider photography and what not." Read: What was Twitter, anyway? (New York Times) | | - WSJ reporter Evan Gershkovich made his first public appearance since being detained in Russia on spying charges. He was put in a glass cage while a judge denied his appeal.
- Elon Musk said he wants to build a chatbot called TruthGPT—a "maximum truth-seeking AI" to rival tech from OpenAI and Google.
- Instagram is allowing users to have up to five links in their bio. It's a blow to "link in bio" companies like Linktree.
- Some contestants on Love is Blind say their time on the show left them depressed and that producers did not offer them mental health support.
- Buffalo Bills player Damar Hamlin, who collapsed during a game after cardiac arrest in January, has been cleared to resume playing football.
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What makes a good gate? Whatever this gate has—it's been dubbed the world's best gate. Lucky No. 7: This video about the prevalence of the number 7 will break your brain. Don't try this at home: A biker rode a BMX bowl suspended under a hot-air balloon. Of course it was a Red Bull stunt. No pranks, promise: Spend $500 during your first 3 months with this card and get a $200 sign-up bonus. Sprinkle in 0% intro APR for 15 months and no annual fee. The Ascent's got the deets.* Listen and learn: Get the A's to all your money Q's (and maybe even a crash course in wine) when you listen to the newest episode of The Money With Katie Show, sponsored by Vin Social.* *This is sponsored advertising content. | | Word Search: State capitol buildings are not all domes and rotundas. See the variety of buildings in today's Word Search. Name that car brand Name the auto brand that makes each of the following models. - Forester
- Hornet
- A4
- Tucson
- Telluride
- Roma
- Encore
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 Brad Hiranaga, Chief Brand Officer at Cotopaxi, will bring his perspective to our marketing summit, The Brief, on May 11. Don't miss this one.
| | - Subaru
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