Raphael Stevens

Netflix said Wednesday its cheaper, ad-supported tier now has 94 million monthly active users.
That is an increase of more than 20 million since its last public tally in November.
Netflix also said its cheapest tier reaches more 18- to 34-year-olds than any U.S. broadcast or cable network.

Cheng Xin | Getty Images

Netflix said Wednesday its cheaper, ad-supported tier now has 94 million monthly active users — an increase of more than 20 million since its last public tally in November.
The company and its peers have been increasingly leaning on advertising to boost the profitability of their streaming products. Netflix first introduced the ad-supported plan in November 2022.

Netflix’s ad-supported plan costs $7.99 per month, a steep discount from its least-expensive ad-free plan, at $17.99 per month.
“When you compare us to our competitors, attention starts higher and ends much higher,” Netflix president of advertising Amy Reinhard said in a statement. “Even more impressive, members pay as much attention to mid-roll ads as they do to the shows and movies themselves.”
Netflix also said its cheapest tier reaches more 18- to 34-year-olds than any U.S. broadcast or cable network.

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Media companies are highlighting podcasts in their conversations with advertisers, including their annual pitches at Upfront presentations.
While the main avenue for video podcasts is YouTube, the free, ad supported streamers are also bulking up on the content, providing more opportunities for advertisers to get in the mix.
Netflix recently said during an earnings call that podcast videos could become part of its platform.

Jason and Travis Kelce with Dunkin Donuts on the New Heights podcast.
Courtesy: Wondery

Amazon’s second-ever Upfronts pitch to advertisers this week featured an appearance by NFL champion brothers Jason and Travis Kelce. They weren’t there to hype live football rights.
While Amazon’s Prime owns the media rights to the NFL’s Thursday Night Football games — and the streamer showcased much of its sports portfolio, including the upcoming NBA season, during the annual media presentations — the Kelce brothers were invited onstage because of the success of their video podcast, “New Heights,” made by Amazon’s Wondery.

Live sports in general have emerged in recent years as the darling of Upfronts. The category was a big part of presentations by Fox Corp., Comcast’s NBCUniversal Disney and Warner Bros. Discovery this week.
Sports content is expected to remain the dominant force in securing advertiser commitments during Upfronts this year, despite growing economic uncertainty.
But viewers’ shift toward social media on both their phones and TV screens has increasingly drawn eyes to the video format of podcasts, and now influencers, TV stars and athletes are inking multi-million dollar deals in response. The quality of the video production of podcasts has increased, too.
The growing emphasis on podcasts during Upfronts is helping to cement the format as value added in the media landscape. Its this consumer gravitation toward social media, tech and streaming platforms that has led advertisers to spend more on these digital platforms than traditional TV in recent years.
Now, they’re more and more turning their attentions to podcasting.

“We’re constantly looking at all different types of content and content creators. The lines between podcast and talk shows are getting pretty blurry,” said Ted Sarandos, co-CEO of Netflix, during an April earnings call in which he said podcasts could soon join the platform. “We want to work with kind of great creators across all kinds of media that consumers love. Podcasts … have become a lot more video forward.”

From pod to video

Jason Kelce on the New Heights podcast featuring Dunkin Donuts.
Courtesy: Wondery

The shift in preferred podcast format from listening to viewing signals another opportunity for media companies vying for advertising dollars.
Video podcasts have been soaring in popularity on Google’s YouTube, which is a dominating force in the media landscape and on TV screens.
The consumer preference has been evident with popular podcasts like Alex Cooper’s “Call Her Daddy,” which has almost 1.3 million subscribers on YouTube. Joe Rogan’s interview last year with then-presidential candidate Donald Trump has 58 million views on YouTube, and counting.
“One of the most relevant formats driving culture — podcasts — is thriving on YouTube,” said YouTube CEO Neal Mohan in a recent post, specifically highlighting Rogan’s interview with Trump. He also cited a report from Edison Podcast Metrics, which named YouTube as the go-to platform for podcasts.
YouTube will hold its presentation to advertisers Wednesday evening.
While podcast companies are able to generate revenue from the sponsorships embedded in the shows, YouTube is typically in charge of the traditional ad spots during breaks. However, Wondery, which is also known for podcasts like “Dr. Death,” was an early “preferred partner” with YouTube, allowing it to sell its own advertising inventory, said Angie More, head of advertising at Wondery.
Amazon acquired Wondery in 2020, putting the podcast maker in Amazon’s advertising ecosystem. Amazon also utilizes video podcasts to create free, ad-supported streaming channels — or in industry jargon, FAST channels. This means Amazon can sell advertising for these channels for the videos outside of YouTube, too.
Having a visual component to the traditional audio content opens up more advertising opportunities, too.
“You can have a more linear TV spot, or you can do full integration with the host, so you can actually have the host talking about the brand and having a visual aspect with product placement,” said More in an interview. “If it’s Coca-Cola, you can actually show them drinking the actual product, or having banners around them, behind them. There’s a lot of different ways to do it, which is nice.”

Sports talk

Hosts (L-R) Rob Stone, Jerry Ferrara, Urban Meyer, Matt Leinart, and Mark Ingram II from the podcasts “The Triple Option” and “Throwbacks” at the 2025 NFL Draft.
Courtesy: Sinclair, Inc.

As the conversation around video podcasts picks up during Upfronts, much of the excitement is driven in particular by sports.
Broadcast station owner Sinclair centered its Upfront presentation earlier in May around its growing podcast content, particularly in sports.
At the event in New York City, executives talked extensively about how brands and sponsors are integrated into the conversation between podcast hosts, such as staging a Nissan Armada onsite or indulging in Wendy’s Frosty treats on air.
Sinclair announced upcoming sports video podcasts after successes with “The Triple Option” and “Throwbacks,” both of which include former NFL players.
Sports-related podcasts, whether discussing the game itself or simply led by former athletes, have been popular among consumers and have led to highly valued partnerships.
The Kelce brothers’ deal with Wondery was reportedly valued at more than $100 million and will run three years.
This year Wondery also announced it had entered into a multi-year deal for the “Mind the Game” series with the NBA superstar LeBron James and former NBA star Steve Nash. This video podcast is one of the first to be made available on Amazon’s Prime platform, along with external sites like YouTube.
“We’re getting to the point where the word podcast means something almost different than it did years ago. It’s really a digital content series, for lack of a better term, and it’s video-first these days,” said Matt Schwimmer, CEO of the Better Collective’s Playmaker HQ. The company makes sports podcasts like “Roommates,” which counts the New York Knicks’ Jalen Brunson and Josh Hart among its co-hosts.
Conversations between media companies and podcast creators are happening more frequently and becoming “more meaningful,” said Schwimmer.
“A lot of them are really starting to kick the tires on syndicating that content from podcast-first companies, and not necessarily making their own,” said Schwimmer, noting discussions with traditional TV networks, the leagues and others.
“I wouldn’t say the budgets are there yet to spend on it, but I think there’s a lot out there and the budgets will come,” he added.
Disclosure: Comcast’s NBCUniversal is the parent company of CNBC. More

American Eagle withdrew its 2025 guidance and said it was taking $75 million in write-offs related to spring and summer merchandise.
The retailer said it expected comparable sales in the fiscal first quarter to fall 3%, while it anticipates overall sales will drop 5%.
American Eagle previously warned that the first quarter was off to a slower-than-expected start.

A customer enters an American Eagle store in Miami, Florida on April 4, 2025.
Joe Raedle | Getty Images

American Eagle on Tuesday said it is writing off $75 million in spring and summer merchandise and withdrawing its full-year guidance as it contends with slow sales, steep discounting and an uncertain economy.
The apparel retailer said it expects revenue in the first quarter, which ended in early May, to be around $1.1 billion, a decline of about 5% compared to the prior-year period. American Eagle anticipates comparable sales will drop 3%, led by an expected 4% decline at intimates brand Aerie. American Eagle previously expected first-quarter sales to be down by a mid-single-digit percentage and anticipated full-year sales would drop by a low single-digit percentage. 

Shares plunged more than 17% in extended trading. 
When it reported fiscal fourth-quarter results in March, American Eagle warned that the first quarter was off to a “slower than expected” start, due to weak demand and cold weather. Conditions evidently worsened as the quarter progressed, and the retailer turned to steep discounts to move inventory.
As a result, American Eagle is expecting to see an operating loss of around $85 million and an adjusted operating loss, which cuts out one-time charges related to its restructuring, of about $68 million for the quarter. That loss reflects “higher than planned” discounting and a $75 million inventory charge related to a write-down of spring and summer merchandise, the company said. 
“We are clearly disappointed with our execution in the first quarter. Merchandising strategies did not drive the results we anticipated, leading to higher promotions and excess inventory. As a result, we have taken an inventory write down on spring and summer goods,” said CEO Jay Schottenstein.
“We have entered the second quarter in a better position, with inventory more aligned to sales trends,” he said. “Additionally, we are actively evaluating our forward plans. Our teams continue to work with urgency to strengthen product performance, while improving our buying principles.” 

The company added it is withdrawing its fiscal 2025 guidance “due to macro uncertainty and as management reviews forward plans in the context of first quarter results.” It is unclear if recent tariff policy changes had an effect on American Eagle.
Some companies bought inventory earlier than usual to plan for higher duties, but American Eagle repeatedly said in March that it was in a solid inventory position and was able to go after trends as customer preferences shifted. 
At the start of the first quarter, the company said it had some inventory outages and needed to supplement stock in a few key categories, particularly at Aerie, one of its primary growth drivers. 

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Shares of Hertz plummeted Tuesday morning following the company reporting disappointing first-quarter earnings and fleet cuts amid slower bookings and tariffs.
Hertz shares were off more than 20% during early morning trading before coming back slightly.
Much of the negative sentiment during the call seemed to revolve around Hertz’s plan to offer fewer cars for rent as it deals with lower bookings and President Donald Trump’s tariffs as well as lower consumer sentiment.

Andrew Kelly | Reuters

DETROIT — Shares of Hertz Global plummeted Tuesday morning after the embattled rental car company reported disappointing first-quarter earnings and a $250 million stock offering.
Hertz shares were off more than 20% during early morning trading before ending Tuesday nearly 17% lower after the company’s morning quarterly earnings call.

Shares of the company were only off roughly 3% heading into the call, following the company’s report that came out after markets closed Monday.
Here’s how Hertz did, based on average analysts’ estimates compiled by LSEG:

Loss per share: $1.12 adjusted vs. a loss of 97 cents expected
Automotive revenue: $1.81 billion vs. $2 billion expected

Hertz announced the at-the-market $250 million stock offering during the call to begin working on deleveraging.
“The combination of an improved earnings profile, refinancing levers and the ATM optionality gives us a number of alternatives for addressing upcoming maturities,” Hertz CFO Scott Haralson said during the quarterly call.
He said the timing, total proceeds and final number of shares offered will be determined as the process occurs.

Investors are also concerned about Hertz’s plan to offer fewer cars for rent as it deals with lower bookings and President Donald Trump’s auto tariffs that have impacted new and used vehicle prices for many models. Hertz and other companies, also are dealing with lower consumer sentiment and less U.S. tourism.
“We prioritized fleet and cost actions at the top of the list. Cost because it moves quicker. Fleet because it’s so impactful,” Hertz CEO Gil West told investors during Tuesday’s call. “So not saying we haven’t focused on revenue … but as we’re moving through revenue transformation, we’re pruning some revenue.”
Hertz’s revenue fell 13% year-over-year primarily due to the reduced fleet capacity, which was down 8% compared with the first quarter of 2024, Hertz said.
The company’s lower fleet is part of its “Back-to-Basics Roadmap” plan to turn around the company to optimize vehicle utilization and, as West put it Tuesday, create “more demand than we can satisfy” to improve profits.

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Hertz stock

During the call, Hertz outlined several key accomplishments under the plan, such as a $92 million year-over-year improvement in direct operating expenses. It also retained many previously announced objectives such as getting depreciation per unit below $300 by the second quarter and positive adjusted earnings before interest, taxes, depreciation and amortization by the third quarter of 2025.
The company also said the first quarter was a record for vehicle sales to retail customers amid a strong residual value market given the tariffs.
“While HTZ is accelerating its transition strategy and has some benefits on depreciation, we believe the risk ahead is on demand. On balance we see the result as net negative,” Barclays analyst Dan Levy said Monday in an investor note.
The stock had increased 90% this year through Monday’s close, largely thanks to Bill Ackman’s Pershing Square Capital Management amassing a 19.8% stake in Hertz. More