Sherwood
Wednesday Dec.18, 2019

Weight Watcher's 9-city Oprah-palooza

_Brainstorming ways to monetize Amazon Alexa_
_Brainstorming ways to monetize Amazon Alexa_

Hey Snackers,

Plant-based meat enjoyed 2019. Specially Processed American Meat says hold my beer — SPAM sales have officially flourished for their 5th straight year of record sales.

Stock markets inched up for another record high, powered by trade deal love.

Diet

Weight Watchers puts full weight behind star-studded Oprah-palooza

Might as well call it Diet-Chella... Weight Watchers isn't counting calories when it comes to investing in big names to rep its brand. Shares rose on word WW (the ‘90s health throwback rebranded from "Weight Watchers") extended its partnership with Oprah through 2025. Check out the resumés of WW stock and Oprah:

  • Oprah: In 2015 the TV legend became a board member, advisor, and the 2nd largest shareholder, owning 8% of the company.
  • Weight Watchers stock: Shares had fallen 90% in the 4 years prior to signing Oprah, but are up 500% in the 4 years after Oprah. We call this year "4 AO."

How do you beat bread-hating Keto diets?... Schedule a nationwide 9-city tour from January to March packed with Oprah. It's called "Oprah's 2020 Vision: Your Life in Focus," and it's WW's most strategic Oprah move — she interviews celebs like Lady Gaga, The Rock, Michelle Obama, and Tina Fey about their health journeys. Paleo can’t fill an arena like Oprah can.

Oprah has way more pull than Chipotle's "Lifestyle Bowls"... WW hopes celeb endorsements will power it through the most critical quarter of the year: New Year’s Resolution Q1. And it’s looking good so far — Tickets for Oprah Vision Tour 2020 are over 80% sold out, and investment bank UBS predicts it'll drive 8% WW subscriber growth. Big names bring big bucks.

Pivot

Alexa has new orders from Amazon: Start making money

First comes puberty, then comes paying rent... Tech follows a similar path — Growth 1st, profits 2nd. Facebook focused its first 5 years on growth, and only started selling ads in 2012. Amazon Alexa grew in its first years to reach 100M Alexa-enabled devices worldwide, selling Echos and Alexa software for near nothing. Now it's time for Part 2: Make money.

10K Amazonians are on Team Alexa... According to reporting from The Information, ten-thousand employees must now figure out how to squeeze $$$ out of your awkward Alexa commands — because the voice assistant only brought in $1.4M in revenues for Amazon this year (that's a measly $140 per employee). Here are some of Amazon's ideas:

  • Premium content?: If you order Spotify through Alexa, could Amazon take a cut of that subscription?
  • Premium skills?: If you ask Alexa to "translate Spanish homework," could Amazon charge your parents for that feature?
  • "Hey, famous person": This one's already happening — Alexa can adopt the voice of Samuel L. Jackson for 99 cents. More A-list celebs coming soon for $5.

It’s not 100% clear Alexa is a success... Amazon's plan was to disseminate Alexas across every corner of the country to hook people on Amazon Prime (and possibly get them voice shopping on Amazon). But that "vcommerce" feature hasn't taken off (at all). The fact that Amazon is now trying to make revenue directly from Alexa could be a signal that it failed its original purpose: Make money indirectly for Amazon.

What else we’re Snackin’

  • Stalled: Uber dodges a legal bullet after a judge decides (for now) not to force its California drivers to be treated like employees
  • Club: Coca-Cola is launching "Insiders Club," a subscription service (real original) to try out new dranks before they're on shelves
  • Insta-Face: How social media, editing, and cosmetic surgery have created a single, cyborgian face that has taken over Instagram
  • Bad Taste: Starbucks apologizes to California deputies who were ignored and refused service at its store (the 3rd anti-police incident it's had this year)
  • Accelerate: Lime whips up a separate subscription for its scooter power users so you'll finally stay loyal
  • Flix Abroad: Netflix breaks down its "international" category of subscribers into more specific regions for first time — Europe, the Middle East, and Asia has more than doubled since 2017

Wednesday

Disclosure: Authors of this Snacks own shares of Amazon

ID: 1039924

Get Your News

Subscribe and thrive

Snacks provides fresh takes on the financial news you need to start your day. Chartr provides data visualizations on business, entertainment, and society. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Latest Stories

Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate, including Robinhood Markets, Inc., Robinhood Financial LLC, Robinhood Securities, LLC, Robinhood Crypto, LLC, or Robinhood Money, LLC.