🛣️ *Like an elevated highway built over a cobblestoned road…*

Layer-1 blockchains like __[ethereum](https://robinhood.com/crypto/ETH/)__ and __[bitcoin](https://robinhood.com/crypto/BTC/)__ have gotten flak for slow transactions and high fees. __Layer-2__ networks are designed to be faster and cheaper: they let users make crypto transactions *outside* the main chains, batch them up, and then report them back to L1s. __Arbitrum__, a leading ethereum L2, is set to [launch](https://www.coindesk.com/tech/2023/03/16/arbitrum-to-airdrop-new-token-and-transition-to-dao/) a hotly anticipated token tomorrow that’ll give holders the ability to vote on changes to its network.

DEFI(NE)

Heard on the Block: "layer 2"

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Tom Jones

__12 hours of “Outer Banks”…__ two hours of ads. __[Netflix](https://robinhood.com/stocks/NFLX/)'s__ ad tier is growing as more Americans pivot to cheaper streaming options. Bloomberg [reported](https://www.bloomberg.com/news/newsletters/2023-03-19/netflix-surpasses-1-million-users-for-its-advertising-business) that the $7/month subscription hit 1M US users two months after launching in November. While the #s are a drop in the popcorn bucket compared to Netflix's 230M+ non-ad subs, they apparently topped advertisers’ expectations. 

- __Adoption:__ In January 19% of new Netflix subscribers chose its ad tier. The ad-adoption is slower than that of its rivals: 36% of new __[Disney](https://robinhood.com/stocks/DIS/)__+ subscribers opted for ads after three months (and 21% for HBO Max).

- __#Subscripturation:__ The number of Americans who say streaming subscriptions are getting too pricey is up 50% since 2020, and nearly half of people in a recent [survey](https://www.forbes.com/home-improvement/internet/streaming-survey/) said they pay for streaming services they don’t use.

__Brick-breaking & blockbusters…__ Americans are bracing for Netflix’s password-mooching crackdown (expected this month). Meanwhile, Netflix needs to give 100M+ non-paying households a reason to pay for their own accounts. Yesterday the streaming leader said it planned to release 40 new in-app games this year, with 70 more in the works. It now has 55 games, including a "Too Hot to Handle" spin-off that’s racked up 1M+ downloads. Netflix also [reportedly](https://www.wsj.com/articles/netflix-bets-big-on-the-electric-state-as-it-seeks-to-build-franchises-385eae06?mod=hp_lead_pos6) plans to splurge $200M+ on an original sci-fi flick (“The Electric State”). The Chris Pratt and Millie Bobby Brown movie could spawn more games, shows, and merch.

11 minutes of ads (Matt Winkelmeyer/Getty Images)

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__The biggest test is still ahead…__ So far, Netflix has rolled out its password crackdown only in a handful of countries, including Spain and Canada — but complaints are already flooding in. Still, the end of mooching could mean more ad-tier subs. Netflix hopes that if users are price-sensitive enough to “share” accounts with an ex, they might be willing to shell out $7 for ad-Flix. Especially if there are more reasons to tune in.

As Netflix’s ad tier hits 1M subs, the streamer bets on games and blockbusters to lure fresh eyes

__Arrived 20 minutes before takeoff…__ didn’t even fly private. Semi-private flights (think: 15 to 30 passengers) have gained traction since the pandemic began, as germ fears led some travelers to seek out less crowded options. These flights aren’t regulated by the TSA and typically depart from private terminals, so security is much quicker. 

- __While these semi-private perks sound pricey,__ some companies are offering them for prices comparable to first class or even economy.

- __For example,__ __JSX__ offers a round trip from Los Angeles to Vegas for under $200. Or an Austin-Dallas roundtrip for $170. Luxury rivals like __Aero__, __Tradewind__, and __Set Jet__ are more comparable to first-class prices.

- __Sweeteners:__ JSX passengers can valet their cars at the airport and hop on a 30-seat jet (with their pet) just 20 minutes before takeoff. JSX says it’s the first air carrier to roll out in-flight WiFi from __SpaceX’s__ Starlink satellites.

- __Downsides:__ These companies have a limited number of routes (nothing near commercial airlines). And they’re typically pricier than a regular flight. 

__Not too hot, not too cold…__ Most folks can’t afford a first-class ticket, much less a private plane. But most people *also* hate being sandwiched in the middle seat in economy and would rather skip long TSA lines. Travelers are also tired of thousands of cancellations and delays from major airlines. Semi-private flights offer a Goldilocks option between flying private and flying commercial.

Private

__“Too good to be true” is hard to maintain…__ There’s a reason airlines squeeze us in like sardines: $$. Planes are expensive to fly and maintain, and 30-person flights at commercial prices don’t seem like sustainable moneymakers. To expand its routes, JSX said it’s going to add a new aircraft to its fleet every six weeks. These companies are cruising in growth mode, but they might have to lift prices to lengthen their runway.

Semi-private-flight companies like JSX take off as passengers seek a “Goldilocks option”

As Netflix’s ad tier hits 1M subs, it bets on games and blockbusters to lure fresh eyes

Heard on the Block: "layer 2"

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