Hi! The word “tariffs” obviously got plenty of airtime during Q1 earnings calls — but so did some of Corporate America’s go-to descriptors, like “uncertain,” “volatile,” “dynamic”… you get the idea. Today we’re exploring:

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YouTube wants to monetize its growing TV dominance with AI-powered ad formats

It’s been a big week for TV, with the annual “upfront” period kicking off in New York, where television titans put on extravagant sales presentations to draw in advertising advances. 

This year, though, was different. Not only did the uncertainty of looming tariffs tighten the purse strings of some of TV’s biggest spenders, but a growing force in the space threatened both traditional broadcast networks like NBCUniversal and Paramount and streaming giants like Netflix and Amazon. 

Indeed, all eyes were on YouTube — the video sharing and social media platform that’s fast becoming the biggest thing on TV (some are even predicting that it will soon surpass Disney to become the biggest media company in the world). In fact, YouTube’s ad business alone is already bringing in close to the massive total revenues that behemoth Netflix has been notching.

Totally tubular

Brandcast 2025, the Alphabet-owned platform’s upfront event, took place on Wednesday, and beyond a star-studded line-up — including a performance from Lady Gaga and appearances from YouTubers MrBeast and Hot Ones host Sean Evans — the company also outlined some novel initiatives for advertising.

Among these was a new ad format called “Peak Points,” which uses Google’s Gemini AI to identify parts of YouTube videos that will drive the most viewer engagement — then place ads right after them. Another new feature is shoppable TV ads, capitalizing on the “big-screen-little-screen” viewing culture by allowing users to browse suggested products on TV, then scan a QR code on their phones to get a direct link to buy them.

AI innovations aside, YouTube’s ability to imitate other entertainment outlets will be another big draw: the company also announced that it’s expanding its NFL offerings, and piloting creators turning their content into bingeable TV shows.

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Americans are losing the taste for plant-based milk — and Oatly is feeling the pain

There were some red-hot IPOs in the class of 2021, with Oatly, Roblox, Rivian, Bumble, and Coinbase all debuting on the public markets. But, while the last of those names has just been inducted into Corporate America’s flagship index, the S&P 500, Oatly’s journey couldn’t have been more underwhelming.

Riding an alt-milk wave, Oatly’s revenues nearly doubled every year from 2015 to 2020 — but shares of the Swedish company are down some 98% from their 2021 peak, as Oatly’s growth finally went sub-zero in the latest quarter. 

Now, Oatly is doubling down on its sustainable credentials, publishing a new “Sustainability Plan” yesterday, which includes “updated emissions reduction targets” and wider goals for “Nature, People and Nutrition.”

But winning over climate-conscious consumers might not be enough, as Oatly has been squeezed from all sides in recent years.

Get oat of here

Major campaigns to prevent plant-based products from even using the word “milk” have dogged the industry for a decade — the UK courts said no, the FDA said yes — and have only recently come to an end. Meanwhile, Big Dairy has splashed into oat territory, with brands like Planet Oat, from dairy giant HP Hood, eating into Oatly’s market share.

Consumers are also getting fussier over the nutritional value of milk alternatives, searching for brands with more protein and fewer sweeteners and artificial ingredients.

On top of all of that, traditional milk sales saw their first uptick in consumption since 2009 last year, and are still up 3.5% for the past year to May, per USDA and Nielsen IQ data. Sales of plant-based milk, however, dropped some 8.4% for the two years to May.

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UnitedHealth’s comeback CEO is getting $1 million a year and $60 million in stock options

UnitedHealth is giving new CEO Stephen Hemsley more than $60 million to step back into the top job, almost eight years after he left the position in 2017. According to an SEC filing from the company on Wednesday, the 72-year-old will get $1 million a year, no annual bonus, and $60 million worth of stock options that will vest after three years.

Hemsley returned to UnitedHealth on Tuesday to replace Andrew Witty, who unexpectedly resigned owing to “personal reasons.” 

The company has changed a lot since Hemsley was last at the wheel, though, with shares heading toward their worst month in history, down more than 40% since mid-April. Indeed, the new CEO signed during a hell of a week when his predecessor abruptly departed, the company withdrew full-year guidance, and The Wall Street Journal reported that the insurer is under investigation for possible Medicare fraud.

Given that the options “will not have any value if the stock does not increase,” per a company spokesman, the pay package will likely serve as pretty strong motivation for the new chief — the latest example of a growing shift in how top execs are compensated.

Money talks

American CEOs are getting paid more than ever, with a record median pay of $16.8 million last year, largely because of big boosts from stock grants — a high-risk, high-return compensation plan with an incentive to meet stock prices. Take Coherent’s CEO James Anderson, for example: topping last year’s list of the highest-paid CEOs, some 99% of his pay consisted of stock grants, the value of which multiplied as the shares skyrocketed.

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