The Best One Yet
🌈 “N-E-T-F-L-I-X” — Sesame Street’s Savior. The Startup-Burying Startup. America’s AAA Downgrade Situationship.
Tue, 20 May 2025
TBOY Live Show Tickets to Chicago on sale NOW: https://www.axs.com/events/949346/the-best-one-yet-podcast-ticketsNetflix just saved Sesame Street… because kids content crushes subscription churn.America got downgraded after 126 years to AA+... So we’ve got 1 solution to our debt addiction.Over 90% of startups fail, and one startup buries them… because LinkedIn ain’t reality.Plus, we’re playing a new game: “Flavor or Fake?”... Is “Hint of Hummus” a real LaCroix flavor?$NFLX $WBD $METAWant more business storytelling from us? Check out the latest episode of our new weekly deepdive show: The untold origin story of… LaCroix 💧Subscribe to The Best Idea Yet: Wondery.fm/TheBestIdeaYetLinks to listen.About Us: The daily pop-biz news show making today’s top stories your business. Formerly known as Robinhood Snacks, TBOY Lite is hosted by Jack Crivici-Kramer & Nick Martell.GET ON THE POD: Submit a shoutout or fact: https://tboypod.com/shoutouts NEWSLETTER:https://tboypod.com/newsletter SOCIALS:Instagram: https://www.instagram.com/tboypod TikTok: https://www.tiktok.com/@tboypodYouTube: https://www.youtube.com/@tboypod Anything else: https://tboypod.com/ Our 2nd show… The Best Idea Yet: Wondery.fm/TheBestIdeaYetLinksEpisodes drop weekly.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.
Chapter 1: How did Netflix save Sesame Street?
For our first story, Sesame Street has been saved by Netflix. Why is Netflix adding Sesame Street? Well, because when you're first, you gotta think like you're last. For our second story, America's credit rating was just downgraded. We're officially no longer a AAA country. So Jack and I will tell you how the economy gets punished for bringing home bad grades.
And our third and final story is the fastest growing startup right now. It's a startup to wind down other startups. Yeah, it's actually a whole new industry we discovered. Funeral homes for startups. But yetis, before we hit that wonderful mix of stories. Oh, what a mix of stories, Jack. Love the mix. Nick and I did a thing. We invented a game. A new game. Here's the game. Here's the game.
Here's the game. It's called Flavor or Faker LaCroix Edition. Basically, is this a real LaCroix flavor or a fake flavor? Because, Yetis, when it comes to LaCroix sparkling water, Jack is a LaCroix connoisseur, a LaCroix sommelier, if you will. So, Jack, why don't you ask me the questions for flavor or faker? May I interest you in a can of coconut cola LaCroix? Okay, coconut cola.
That smells like sunscreen. I'm going to say this is a real flavor. That's correct. It is real. How about basil bellini? All right. Basil bellini. That tastes like pesto. I'm going to say that's a fake flavor. Correct. Okay. Beach plum. I'm going to go fake on that because I'm pretty sure you can't grow plums in the sand on a beach, Jack.
That's incorrect. What? So apparently you can grow plums on the beach.
We've got a lot to learn. How about this? Would you like a can of hint of hummus, LaCroix? Hint of hummus? You know what? I'm going to say real because I think everybody likes garlic. Yeah, it's their Middle Eastern play. Nope. False.
All right, Nick. Sunshine.
Real or fake? That's it. Sunshine. That's all you're going to give me? Sunshine. Is that a real LaCroix flavor? It makes so little sense. It makes too much sense. I'm going to say real LaCroix flavor. It is real. What does sunshine taste like? Apparently zero calories, Jack. How about this? Last one. Essence of everything bagel, LaCroix.
Well, Jack, essence of everything bagel definitely is a fake LaCroix flavor, but they definitely should make that. Yetis, few know that LaCroix is actually a $4 billion publicly traded stock. We've been covering on this pod for years. Or that LaCroix actually started as a beer business in the Midwest. Or how they landed on a can design that Nick and I can only describe as...
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Chapter 2: What does America's credit downgrade mean?
Have you seen Euphoria, Jack? I'm, like, too intimidated to pick up the dial. The trailer had me schvitzing. It was intense, man. Well, Warner Bros. Discovery wanted their new streaming app to appeal to everyone, like Netflix does, and they signaled that by calling it Max. Well, years later, after that name change, it looks like the name change didn't work.
Well, the whole strategy hasn't worked because Max only has 122 million subscribers That's less than half as many as Disney Plus or Netflix. So add it all up, besties. And Max's decision to drop Sesame Street is actually consistent with their decision to rename to HBO. It's all consistent with the strategy of focusing on adults. Exactly. They're done trying to get kids to stream.
They want people who watch GOT, not OTG. Translation, Game of Thrones, not Oscar the Grouch. Euphoria passed over with bedtime. You gave it a good shot, Jack. You gave it a good shot. We'll workshop it after the pod. So, Jack, what's the takeaway for our buddies over at Netflix? When you have the lead, step on the accelerator.
Now, Yetis, the real value of kids' content is that it actually eliminates churn at a very low cost. Because cord pausing is a big issue for streamers. Cord pausing is when people subscribe just to watch The White Lotus... and then unsubscribe when the season's over. But interestingly, it's not the case if your kids watch the programming.
For millions of families, they stay subscribed to Disney+, because it's a low-cost digital babysitter. Your four-year-old doesn't care which season of Bluey they're on. They just want to watch Bluey all the time, mommy, daddy, all the time. But here's the thing. Netflix's content is so good and so vast... they already have the lowest churn in the industry. Get this.
Just 2% to 3% of Netflix subscribers unsubscribe each month. That's it. On the other hand, Disney's churn rate is two times that, and Apple's is triple that. So even though Netflix is in the lead, it doesn't matter. They want to make their churn even worse. lower. And that is why Netflix recently snagged the rights to Cocomelon, Miss Rachel, and now Sesame Street.
Netflix could relax, save some money on content to boost their profit margin. But Jack, in a market where Spotify, Disney, TikTok, and YouTube are all competing, you can't just go on cruise control. It's not a lesson Bert and Ernie would teach you. No, it's not. But in business, when you have the lead, go even faster. For our second story, it's official.
America's AAA credit rating has now been downgraded by every single agency. America is addicted to debt. We are. We'll tell you the one thing that could actually change that. Now, Yetis, fun little scenario here Jack and I were playing with. Let's say you're a bond, a financial bond, and you go out on a dinner date with- With an investor.
Yeah, if you go out with an investor and you're a bond and you want to hook up. The investor is going to ask you, the bond, what's your fiscal situation? Well, America's answer- is a huge beige flag. There are $36 trillion of debt. That's our fiscal situation. It's actually a red flag now that I think about it, Jack.
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Chapter 3: Why are startups failing at high rates?
Investors are still raising America's credit limit, but this time they're charging a higher interest rate. Now, besties, if these interest rates continue rising on our bonds, just paying our interest that we owe could require spending cuts and tax increases from Congress. Investors are treating the U.S. as no longer the most creditworthy country in the world.
So the one thing that could actually fix our debt addiction, what is it, Jack? If the world starts making us pay for it. Now, a quick word from our sponsor.
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For our third and final story, the fastest growing startup right now specializes in shutting down startups. Because get this, for every 10 new startups formed, nine startups fail. Which is an opportunity for another startup.
Yeah, that's the story.
We'll explain, but yet he's to sprinkle on some initial context. 10 years ago, the WeWork era, masa. What were we seeing, Jack? Free kombucha, three meals a day catered, free kombucha for your dog, who also gets health benefits. It was a venture-backed party for your puppies. But today, it is a different world out there for startups, isn't it, Jack? You have to have a budget. You have to have...
Profit targets, profit deadlines, no more free sushi Fridays. It's now BYO sushi. Oh, honey, get the salmon out of the fridge. But Yetis, there is one startup that ironically we notice does better as every other startup does worse. It's called Simple Closure. And they're basically thinking of themselves as the TurboTax of shutting down. And they just raised 15 million bucks to shut down startups.
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Chapter 4: What is the 'Flavor or Faker' game about?
So the vast majority of startups are failing, and yet the vast majority of what they're posting is that they're thriving. Yeah, so don't get bothered when you see those posts. Instead, hey, there's an opportunity here. The difference between the online perception and the offline reality is an opportunity. The perception reality divide. It's an opportunity in any industry.
Jack, could you whip up the takeaways for us for T-Boy Tuesday? Sesame Street is leaving Max. It's coming to Netflix sometime later this year. Because when you're in the lead in business, you need to press on the pedal faster. For our second story, after 126 years of a AAA rating, Moody's has downgraded the United States to AA+.
The only thing that could get America's debt addiction under control is if the world actually starts charging us a higher interest rate. For our third and final story, Simple Closure is a startup that helps other startups shut down, and it just raised VC money. The perception divide on LinkedIn, that was their opportunity. But yetis, this pod's not over yet.
Here's what else you need to know today.
First, it's official. Mark Cuban is retiring from his greatest hit, Shark Tank. Friday's season finale on the VC reality show will be his last episode of Shark Tank. Marky Mark Cuban put in 14 seasons. All of them, we can only use the word wonderful. He's going to spend more time with his children and start a $700 million PE firm to invest in pro sports teams.
And Mark, yes, will take 15% equity at a $6 million valuation. Ha ha ha. And second, 70% of advertisers on Instagram and Facebook are promoting scams, illicit goods, or low-quality products to you. That's according to Wall Street Journal reporting of a 2020 Meta internal study. Yeah, the wildest part? Meta doesn't even seem to care.
As long as they're getting paid for the ads, they'll post the ads. The report says that Meta allows 32 strikes before banning an account. I haven't played baseball in a while, Jack. But Nick, 32 strikes and you're out. It's a lot of strikes.
And finally, Touchland, the antibacterial spray we covered on this show that went viral with Gen Z. They just got acquired for $700 million by Church and Dwight, the company that owns Arm & Hammer. Oh, and Daily Harvest, the smoothie delivery startup that introduced Jack to chia seeds?
That's factually accurate. Well, Daily Harvest just got acquired by Chobani, the yogurt company, for $600 million.
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