The Netflix logo is seen on a TV remote controller, in this illustration taken January 20, 2022.Dado Ruvic | ReutersNetflix will charge $6.99 per month for its new advertising-supported tier, which the company will roll out in the U.S. on Nov. 3.Netflix’s “Basic with ads” tier will include an average of four to five minutes of commercials each hour and won’t give users the ability to download movies and TV series. A limited number of TV series and movies will initially be unavailable due to licensing restrictions.Ads will be 15 or 30 seconds in length and will play before and during Netflix’s content. Companies will have the ability to prevent ads from appearing on content they deem unsavory or unsuitable. To help advertisers understand its reach, ratings company Nielsen will use its standard digital audience measurement, Digital Ad Ratings, in the U.S. beginning in 2023.Netflix is launching its first less-expensive plan with commercials after years of rejecting the concept. The move comes as subscriber growth has plateaued in recent quarters. Netflix lost subscribers in the first two quarters this year and expects to add just 1 million customers in the third quarter. The company has about 221 million subscribers globally, which makes it the largest worldwide streaming service.Netflix will announce its third-quarter earnings after the market closes Tuesday and plans to unveil new subscriber and revenue forecasts, according to Chief Operating Officer Greg Peters. Netflix is partnering with Microsoft for its advertising-supported service. The streaming company will have hundreds of advertisers at launch and has nearly sold out its inventory, the company said in a media conference call.Initially there will be no advertising within kids programming and new movies. Older films may have mid-roll advertising.Pricing below DisneyNetflix’s $6.99 per month pricing is less expensive than ad-supported Disney+ and Hulu, which will both be $7.99 per month when Disney+’s ad tier launches in December. HBO Max with ads is $9.99 per month.Netflix priced the service so that any customer who switches to the ad-supported service from the ad-free basic plan will have a “neutral to positive” effect on the company’s revenue, according to Peters.That suggests Netflix will get at least $3 a month per user in advertising revenue.”We want to offer consumers choice and figure out what the best offering is for them,” Peters said during the conference call.Video resolution for Netflix’s advertising tier will be 720p rather than 1080p, the quality of Netflix’s standard plan that costs $15.49 per month. The company’s basic plan without advertising is $9.99 per month and also has 720p resolution.The advertising tier will initially be available in Canada and Mexico on Nov. 1, followed by Australia, Brazil, Canada, France, Germany, Italy, Japan, Korea, Mexico, the U.K. and the United States on Nov. 3. Spain will launch on Nov. 10.The price of streamingNetflix
$6.99 − basic with ads
$9.99 − basic without ads
$15.49 − standard without adsHBO Max
$9.99 − with ads
$14.99 − without ads Hulu
$7.99 − with ads
$14.99 − without ads Paramount+
$4.99 − with ads
$9.99 − without adsPeacock
$4.99 − premium with ads
$9.99 − without adsDisney+
$7.99 − with ads*
$10.99 − without ads**Available starting in DecemberWATCH: How Netflix lost its edge in the streaming wars .
Airlines revamp in-flight menus, from vegan meatballs to ice cream sundaes
Courtesy: Singapore AirlinesThe aromas of airplane food are once again wafting through cabins at 35,000 feet.From vegan meatballs to ice cream sundaes, airlines are offering new options and old favorites to woo returning travelers. As the peak travel season fades and inflation weighs on household and company budgets, it’s even more important than usual for airlines to court passengers.Airplane food, a favorite travel punchline for comedians, is hardly the top reason why travelers choose a carrier — price and schedule are much stronger factors. But it can be a creature comfort on board and can go a long way toward winning over passengers, especially those who are willing to pay up for premium seats, analysts say.”Food is one of the most tangible signals of what an airline thinks of its customers,” said Henry Harteveldt, founder of travel consulting firm Atmosphere Research Group and a former airline executive.The start of the Covid-19 pandemic halted almost all food and beverage service on flights as travel collapsed and airlines limited crews’ contact with passengers to avoid spreading the virus. The pandemic drove airlines to record losses and had them looking to cut costs wherever possible, such as in-flight food.With travel returning, airlines around the world are rolling out new menu options. Alcohol sales, with some new ready-to-drink options, are back on board in U.S. coach cabins. And face masks are now mostly optional, removing an obstacle to onboard food and beverage service.As tastes change and airlines face supply chain challenges, the meal on your seat-back tray table is making a comeback — with some adjustments.Chasing high-paying travelersBetter in-flight menus can boost a carrier’s image and help it bring more high-paying travelers on board. First- and business-class customers are becoming even more of a prize as airlines try to recover from the pandemic’s financial impact.Because of “the incentive to win those premium class passengers, the incentive to spend more money [on food] is high,” said Steve Walsh, partner at management consulting firm Oliver Wyman in its transportation and services practice.Still, food and beverage costs make up just about 3% of a full-service airline’s expenses, he estimated.Courtesy: Singapore Airlines | American AirlinesWhile food is for sale in many domestic coach cabins and is generally complimentary on long-haul international flights, many of the new offerings target those in premium classes, where there are fewer passengers and service is more elaborate.A plethora of videos have been posted online by airline passengers reviewing meals, plating and service in detail. Popular staples such as Biscoff cookies and Stroopwaffel treats garner loyal followings and come to be expected by many travelers. Missteps on the menu or service are amplified on social media by disappointed travelers.One offering: Delta is serving passengers on long-haul international flights a new sundae-in-a-cup premixed with chocolate, cherries and spiced Belgian cookies called speculoos, which are known in North America as Biscoff cookies.”Obviously it is an homage to the Biscoff,” said Mike Henny, Deltas’ managing director of onboard services operations.In more premium cabins, such as Delta One on international flights, passengers can build their own sundaes with a choice of toppings, including Morello cherry compote, chocolate sauce and speculoos cookie crumbles.Ice cream on Delta Air LinesSource: Delta Air LinesDelta in July said the revenue recovery in premium products and its extra-legroom seats was outpacing sales from standard coach — further motivation to introduce new and exciting food items.Last week, the airline said it is teaming up with James Beard Award winner Mashama Bailey, executive chef of Savannah, Georgia-based restaurant The Grey, for “Southern-inspired” meals on flights out of Atlanta for domestic first-class passengers. Travelers on Delta One flying internationally out of the hub can also preorder menu items curated by Bailey.Airlines for years have teamed up with celebrity chefs to design their menus and lately have been working more with local businesses. In February, American Airlines brought Tamara Turner’s Silver Spoon Desserts’ Bundt cakes on board domestic premium cabins.Veggie and veganEven before the pandemic, airlines were expanding options for travelers who prefer vegetarian and vegan meals. Now, those types of alternative dishes are getting an even closer look.”Pasta isn’t always the solution,” said Delta’s Henny.Singapore Airlines, a carrier that operates some of the world’s longest flights, brought in Southern California-based luxury spa Golden Door to develop dozens of recipes for its in-flight menu. Golden Door’s executive chef, Greg Frey Jr., focuses on vegetable-forward dishes that he says are among the best for digestion on flights.”I think people are, rightly so, concerned they’re not going to feel as satiated with this vegetarian meal and [think] ‘I just need this piece of meat.’ And in the end … you really don’t need that much protein when you’re sitting in an airplane and relaxing,” he said. “It’s not like you’re heavy lifting.”An hour later, you’re not going, ‘Ugh, I wish I didn’t have the meatballs.'”Greg Frey Jr.executive chef at Golden DoorFrey developed a Portobello mushroom “meat ball” dish that’s served with a dairy-free risotto made with vegetable broth. The mushroom balls are steamed and served with an heirloom tomato sauce: “There’s not a lick of meat in there,” he said.”It’s so satisfying and you get all those umami flavors,” he said. “The best part is an hour later, you’re not going, ‘Ugh, I wish I didn’t have the meatballs.'”Supply chain puzzleGreens and salads are among the most difficult dishes to serve on board. Airline chefs have to make sure ingredients are hardy enough to endure transportation and refrigeration, making stronger greens such as kale a better option than some more delicate varieties.”We have to be very choosy about what type of greens we offer,” said American Airlines spokeswoman Leah Rubertino. “Arugula, for example, is not our friend.”The airline is offering salads on more flights compared with before the pandemic, Rubertino said.The airline is also now offering a “fiesta grain bowl” with rice, quinoa, black beans, cauliflower, corn and zucchini as a vegetarian option in many first-class cabins for domestic flights.Airlines have been trying to source vegetables more locally, giving their catering companies fresher ingredients and cutting down on transportation time and costs. Singapore Airlines since 2019 has been using greens from AeroFarms, a vertical farm near Newark Liberty International Airport in New Jersey. Spokesman James Boyd said the airline has plans to source from other vertical farms close to the major airports it serves in the coming years.Vertical farm at Aerofarms in New JerseyLeslie Josephs | CNBCOnce the ingredients are sourced, there’s the challenge of serving meals for thousands of passengers — made only more difficult by broad supply-chain and labor shortages and delicate ingredients.Airlines have struggled to staff in a tight labor market, as have airport catering kitchens and other suppliers.”There’s not a day that goes by where we don’t have issues with provisioning our aircraft with pillows, blankets, plastic cups, food,” American Airlines CEO Robert Isom said on a quarterly call in July.Delta’s Henny said the carrier phased food back gradually to ease strains on service.”We knew we couldn’t just flip a switch,” he said. “We had to be very creative at the height of the pandemic.”As food service expands, airlines are encouraging travelers to order their meals ahead of time so the carriers know what to load on the plane, whether it’s a special meal for religious or other dietary restrictions or just their favorite dishes in first class.Meanwhile, some flight attendants still have to make do with what’s on board.Susannah Carr, a flight attendant at a major airline and a member of the Association of Flight Attendants union, told CNBC that if the crew doesn’t have a vegetarian meal on board for a premium-class passenger, “We might pull some additional salad and make them a bigger salad” and incorporate a cheese plate.”We’ve definitely gotten good at ‘McGyvering,'” she said. .
Walmart invests in ranchers’ company as shoppers favor premium beef
The assortment in Walmart’s beef department has reflected changing consumer preferences, as more of them opt for higher quality cuts of meat.Melissa Repko | CNBCAs more grocery shoppers opt for higher quality meats, Walmart said Wednesday that it is investing in a company led by ranchers and beef producers to bulk up its supply.The retailer is taking a minority stake in Sustainable Beef, which plans to open a processing facility in North Platte, a small town in west-central Nebraska that is home to the former ranch of storied Western showman Buffalo Bill Cody. It expects to break ground next month and create 800 jobs.Walmart declined to disclose the specific amount of its investment. As part of the deal, however, the retailer will get the majority of beef produced at the facility, which is expected to open by late 2024, said Tyler Lehr, senior vice president of merchandising for deli services, meat and seafood for Walmart U.S. It will also get representation on the company’s board.For the retailer, the deal means a larger, more consistent supply of beef, including better cuts. For shoppers, it will show up in the form of ground beef and steaks — including ribeye, sirloin and New York strip — in its meat department. Walmart will source Angus from the company, a type of beef that comes from a cattle breed often associated with more flavor because of its marbling.The beef will hit store shelves in the central part of the country starting in late 2024, Lehr said.A beefed-up grocery strategyWalmart, the country’s largest grocer by revenue, is making investments in agriculture and food production as consumers eat differently and crave more information about the items they toss in their shopping carts. The company invested earlier this year in Plenty, a California-based startup that grows leafy greens indoors and closer to urban centers. The agriculture method of vertical farming uses less water, eliminates the need for pesticides and requires less transportation to get to the store shelf.Two years ago, Walmart opened a beef-processing facility for Angus beef in Thomasville, Ga., and in 2018, it opened a high-tech dairy plant in Fort Wayne, Ind.The Sustainable Beef investment also feeds Walmart’s environmental and social commitments. By 2030, the retailer, along with the company’s foundation, has pledged to protect, restore or more sustainably manage at least 50 million acres of land and 1 million square miles of ocean by 2030. And two years ago, it said it would work toward sourcing more sustainable fresh beef by working with ranchers on grazing management, grain sourcing and more.Groceries drive almost 60% of Walmart’s U.S. sales, according to its most recent annual report. Fresh groceries like fruits, vegetables and meats are especially a growth driver and influence where people choose to shop, Lehr said.”Customers continue to tell us one of the biggest points of differentiation is they want to know where it comes from,” Lehr said. “They like to know and learn a little bit more about it rather than just seeing it on the meat counter. There’s a greater drive and desire for them to know what the backstory is on the products that they’re purchasing in store.”Sizzle and steakDuring the past months of rising inflation, Walmart’s reputation for low prices has attracted middle- and high-income shoppers looking to save on groceries and essentials, including some who may seek premium cuts of meat. In the most recent quarter ended July 31, Walmart said about three-quarters of the company’s market share gains in food came from customers with annual household incomes of $100,000 or more. The discounter cut its full-year profit guidance last month, but increased its projections for sales growth, citing gains in its grocery category.Grocery shoppers, especially younger generations, expect more from their food — even as they watch their budget, said Rob Dongoski, food and agribusiness leader for consulting firm EY. Along with seeking tasty and affordable items, they consider other attributes, such as whether an animal was treated humanely or if produce was grown in a more sustainable way. They may look for labels associated with health or wellness, too, such as “organic,” “grass-fed” or “antibiotic free.”If you look at Gen Zers and millennials, cars and houses are more needs-based and food is more status.Rob Dongoskifood and agribusiness leader, EYAnd, Dongoski said, some of those consumers are willing to pay more for them.”There’s a renewed interest in food,” he said. “Boomers and Gen Xers affiliated status with their car and their house and food was a necessity and needs-based purchase. If you look at Gen Zers and millennials, cars and houses are more needs-based and food is more status. We’ve seen a real difference in that attitude.”Those evolving preferences have changed the look of Walmart’s meat department, too. On a store tour earlier this summer with Walmart’s Chief Merchandising Officer Charles Redfield near the big-box retailer’s Arkansas headquarters, he pointed to fridges full of beef.Inside of the chilled area, there is now a larger number of steaks on black trays versus white ones. The black trays are for choice beef, a higher-quality cut that’s juicier and more flavorful, and the white trays are for select beef, a lower standard of meat that’s less marbled and tender.Three or four years ago about 70% of steaks at stores were in the white trays, he said; now, the mix has flipped. .
GM Super Cruise hands-free system expanding to cover 400,000 miles
That green light means you can take your hands off the wheel. Just keep your eyes on the road!Mack Hogan | CNBCDETROIT – General Motors is expanding its Super Cruise hands-free driving system in the U.S. and Canada later this year, introducing the feature for non-interstate roadways and highways such as Route 66 and the Pacific Coast Highway.With the additional roadways, the driver-assistance system will be usable across more than 400,000 miles of U.S. and Canadian roads, up from about 200,000 miles of strictly divided highway interstates.”These are the main roads that connect the smaller cities and the townships across the U.S. and Canada,” David Craig, GM’s mapping specialist, said during a media briefing. “This is expanding Super Cruise’s availability to many, many millions more customers.”Super Cruise uses a system of sensors and cameras to control steering, braking and acceleration functions of the car without the driver’s input. It also utilizes high-definition maps; a light bar to communicate with the driver; and an in-vehicle monitoring system to ensure drivers remain attentive while Super Cruise is operating.The feature, even with the update, won’t make turns on behalf of the driver or operate in cities, towns and residential streets, like some of Tesla’s driver-assist systems. Super Cruise will also hand control of the vehicle back to drivers if they are approaching an intersection with a stop sign or traffic light.Despite names like Super Cruise, or Tesla’s Autopilot and “Full Self-Driving” brands, these vehicles are not autonomous, or safe to use without a driver behind the wheel.GM said the newest roadways for Super Cruise will be available via over-the-air, or remote, updates, beginning in the fourth quarter of this year for most of its eligible vehicles. GM will not charge for the update, however the optional add-on currently starts at $2,200 or $2,500, depending on the vehicle.GM is expanding its Super Cruise hands-free driving system in the U.S. and Canada later this year to 400,000 miles of roadways,GMGM has slowly increased the availability and capabilities of Super Cruise since it was launched in 2017. It plans to offer Super Cruise on 23 models globally by the end of next year. It’s also announced a new system called “Ultra Cruise,” which GM has said will be capable of handling driving in 95% of scenarios.GM’s premium tier may make the company more directly competitive with Elon Musk-led electric vehicle maker Tesla. Driver-assistance systems from Tesla include the standard Autopilot, and premium option marketed as Full Self-Driving (or FSD), as well as, FSD Beta that lets drivers test out features on public roads before they go into widespread use.Driver-assistance systems have seen an increase in regulatory attention, specifically around accidents involving Tesla vehicles.Mario Maiorana, GM chief engineer of Super Cruise, said the company is in routine communication with the National Highway Traffic Safety Administration about the rollout of the additional roadways.”We’re not going to put it out until we’ve fully tested it,” Maiorana said, taking a slight jab at Tesla, which has been offering in-development “Beta” systems to some owners.GM’s Super Cruise hasn’t received as much attention or scrutiny as Tesla’s systems, partly due to additional safeguards and the company’s more conservative approach. GM has also only sold roughly 40,000 vehicles with Super Cruise, while Tesla offers some form of its systems on every vehicle it offers.As of the first week of July, NHTSA reported it had opened more than 30 probes since 2016 into collisions involving Tesla vehicles where driver-assistance systems like Autopilot were a suspected factor. The same report noted the federal vehicle watchdog was looking into two nonfatal incidents potentially involving Super Cruise.Tesla crashes under investigation as of the July report have resulted in 16 fatalities of vehicle occupants or pedestrians, according to the agency.Automakers are required by law to report fatal and other serious collisions involving driver-assistance systems to the NHTSA.– CNBC’s Lora Kolodny contributed to this report. .
GM reveals new GMC Canyon premium midsize pickup, starting at $40,000
DETROIT — General Motors on Thursday revealed its redesigned GMC Canyon as a more premium offering than the current midsize pickup, including a new off-road AT4X model that will expand the vehicle’s pricing range.The new AT4X model features off-road performance parts as well as unique interior and exterior styling. It will launch alongside a standard AT4 off-road pickup, premium Denali model and an entry-level Elevation trim that will start at about $40,000. The company will also offer a limited “AT4X Edition 1” vehicle for the first year of production, starting at $63,350. Starting pricing for the current model tops out around $50,000.Amid pent-up demand and record high prices, automakers have been adding more off-road and performance variants to their lineups to beef up profit margins before they transition more to electric vehicles, which can offer high performance but have lower margins than gas-powered vehicles.GM started offering AT4 vehicles with its full-size Sierra pickup in late 2018. It has since expanded to the entire GMC lineup. AT4 currently accounts for about a third of Canyon sales, according to officials.The Canyon is a sibling vehicle to the recently unveiled Chevrolet Colorado midsize pickup, but the company has greatly differentiated the designs of the new vehicles. However, both pickups share the same platform and “bones” and are exclusively powered by a 2.7-liter four-cylinder engine that produces up to 310 horsepower and 430 foot-pounds of torque.GM expects to begin producing the 2023 Canyon early next year, with AT4X models beginning in spring 2023. GM opened reservations for the 2023 GMC Canyon AT4X Edition 1 on Thursday.Each 2023 Canyon is higher and wider than the current generation. It’s also longer but offers about the same interior space as the current vehicle. The new design is more aggressive than the outgoing model, including a large rectangular grille and a new iteration of the brand’s signature C-shaped front lights.Midsize pickup trucks are important to the automaker, but their sales are far lower than GM’s larger full-size pickup trucks. For example, GMC sold only about 13,700 Canyons through the first half of this year compared with more than 70,000 Sierra light-duty pickups during that time.GM’s U.S. sales were down about 18% through the second quarter as the global automotive industry continues to manage through supply chain problems, including a shortage of semiconductor chips. .