Airlines Make $33B on Bag Fees & Investors Are All in on Farming

Checked baggage fees are increasing for travelers. American Airlines recently announced raising the fee for checking the first bag at the airport to $40 from $30, and the fee for the second bag will now cost $45. This price hike is to offset rising costs for fuel, machinery, and labor. Other airlines, such as Alaska and JetBlue, have already implemented similar fee increases. This means that overhead bin space will be even more limited, and travelers may need to consider packing lighter for their trips. For businesses, it's important to note that Veeam can help protect and recover data in case of unexpected events. This was demonstrated when one of Morning Brew's ad partners listened to the podcast and purchased Veeam for their company. Overall, the MBD team expressed their gratitude for listeners' support during their first year anniversary, sharing their roses and thorns. While they may have grown into their roles as news anchors, they continue to appreciate the community they've built and the interactions with their audience.

Airlines are increasing revenue by charging for baggage fees, which totaled $33.3 billion in 2022, representing a 15% increase from the previous year and 4.1% of global airline revenue. This trend started with discount airlines and has since been adopted by major carriers, leading to crowded overhead bins and creative solutions from passengers to avoid fees. Walmart's recent acquisition of VIZIO, a TV maker with an extensive ad network and 18 million active accounts, highlights another way companies are maximizing revenue through various means. These examples illustrate the ongoing trend of businesses exploring innovative ways to increase profits.

Retailers, including Walmart, are recognizing the potential of the advertising business as a significant revenue stream, especially as they face thin margins in their traditional retail operations. Walmart, in particular, is looking to expand its ad business through acquisitions like VIZIO and the utilization of its vast customer data. The ad business offers virtually infinite margins, making it an attractive prospect for retailers looking to diversify their revenue streams. Additionally, investment in farmland has emerged as a hedge against inflation and a bet on the growing global population's food needs. The value of farmland held by investment groups has more than doubled in the past three years, and the price of land has surged accordingly. The world's population is projected to reach 10 billion by 2050, requiring a 60% increase in food production. These trends illustrate the growing importance of non-traditional revenue streams for businesses in various industries.

The increasing demand for agricultural land as an investment is causing concerns for farmers and lawmakers. While it presents an attractive opportunity for deep-pocketed investors, both foreign and domestic, it could lead to higher land prices and make it difficult for younger farmers to enter the industry. Additionally, there are growing concerns about foreign corporate entities buying up large tracts of farmland, which has led to new laws being proposed to restrict such purchases. This comes as HBO, in a similar vein, has decided to withhold its content from YouTube to drive subscriptions to its streaming service. The agricultural land market and the media industry are both experiencing shifts driven by investment and competition, with potential implications for accessibility and control. Keep an eye on the upcoming farm bill negotiations for further developments in the agricultural sector.

HBO Max's decision to remove popular shows like Last Week Tonight with John Oliver from YouTube and keep them exclusive to their platform is a risky move. While it may help boost subscriber numbers in the short term, it could limit the shows' reach and viral potential. This strategy contrasts with that of shows like The Daily Show with Jon Stewart, which release clips on YouTube and see significant viewership. The success of YouTube was initially fueled by TV content, and the interplay between TV and YouTube has been ongoing for almost two decades. The removal of shows from YouTube could also hinder their ability to go viral and stay relevant in the ever-changing news cycle. Overall, it seems that TV networks need YouTube more than YouTube needs them.

The world's insatiable demand for chocolate is far outpacing the supply, leading to record-high prices. This situation, which has been exacerbated by adverse weather conditions and underinvestment in the cocoa industry over the past two decades, could result in consumers paying more for their favorite chocolate treats or receiving less chocolate for the same price. Additionally, the commoditization of chocolate in recent decades, with demand more than doubling since the 1990s, has put further pressure on the already strained supply. The cocoa crisis is expected to continue, with prices potentially doubling again or stabilizing at higher levels, while the industry waits for new plantings to come online and increase production.

Bridget Mendler's career trajectory defies conventional expectations. After finding success as a Disney Channel star, she transitioned into singing, attended MIT and Harvard Law, and now leads a space technology startup called Northwood Space. Her journey demonstrates the importance of following one's passions and continuously evolving, even in the face of public perception or initial success. Northwood Space aims to address the growing need for ground infrastructure to support the increasing number of satellites used for data transmission and analysis. The company's mission highlights the potential for innovation and progress in the space industry. Bridget's story serves as an inspiration for individuals to pursue their interests and adapt to new opportunities, no matter the field or previous accomplishments.

A young entrepreneur is making waves in the business world by starting a company that has raised $6 million in funding from major venture capitalists. She is being compared to a real-life Barbie due to her involvement in various professions. The company is generating significant hype, and while details were not provided, it's clear that big things are happening. This serves as an inspiration for aspiring entrepreneurs and a reminder of the potential for innovation and success in today's business landscape. Stay tuned for more updates on this exciting development.