The business model that finally hit a wall
If Netflix needs a bundle to survive, what does that mean for the rest of us?
Hey there,
This week has been one of those busy Q4 stretches where everything seems to happen at once. I’ve been deep in end-of-year planning with clients, looking over 2026 hiring plans, restructuring teams, and making sure everyone heads into January with a plan instead of stress. Now, with Christmas coming up, I’m honestly looking forward to some family time, a bit of rest, and hopefully a break from my laptop.
This season always reminds me that founders often overlook the importance of momentum. Many believe the new year will fix everything, but really, your Q1 is shaped now, in December. The choices and preparation you make now set you up for either a strong or slow start.
This week’s stories follow that theme. Big changes are on the way next year. Founders who start planning now will be ready for what’s ahead.
Let’s get into it.
🌐 News Shortlist
1. The Labor Market Is Cooling, but That’s Not the Real Story
Recap: The newest Fed Beige Book reports that hiring demand is dropping across the country. Companies are slowing down recruitment, using more freezes and attrition, and laying off more people than earlier this year. Entry-level jobs are hit hardest as AI takes over repetitive work, but it’s still tough to find people for specialized technical roles.
Most people see this as a warning, but I don’t. A slower market can actually help founders who hire with purpose. The real issue I see every year isn’t the economy—it’s timing. Leaders either rush to hire in November because “we need someone now,” or they stop everything until January and then wonder why hiring takes until Q2.
Neither approach helps you in the long run.
Great founders take a different approach. They use the next 6 to 8 weeks to plan the team structure they want for Q1. They clearly define the role, outline responsibilities, set the budget, and make sure everyone knows what “success” means before starting the search for candidates.
A slower market doesn’t mean you need to hire right away. It means now is the time to plan.
Advice:
Don’t hurry to make a hire just to finish the year, and don’t put everything off until January. Use the rest of Q4 to create your hiring plan, so when Q1 begins, you’re ahead of other founders who waited.
2. California Just Drew a Line on AI Hiring
Recap: California has moved forward with strict new rules that would make employers audit their AI hiring tools, tell candidates when automated systems are used, and show that these tools are not causing bias. Companies would need to track results, document their decisions, and explain rejections to candidates. In effect, AI hiring would be treated like a regulated product. While not every state will follow, California’s actions often set the standard for the rest of the country.
California is known for regulating early and figuring out the details later. I doubt we’ll see rules this strict everywhere, but the message is clear: if you use automated hiring tools, regulators will soon want to know how they work.
Honestly, the simplest way to stay compliant is not to hand off your recruiting to AI at all. The best candidates usually aren’t applying on your website. They’re busy working and not taking chatbot assessments late at night. It’s the passive candidates who make big moves, change teams, and help shape your company’s future.
AI can help sort through résumés, but it can’t replace the effort of reaching out to people, building trust, understanding what drives them, and persuading top talent to join your team.
Many founders overlook this gap. This is the kind of work my team does every day throughout Latin America.
Advice:
If you want to stay ahead of new rules and improve your hiring, move away from automated funnels. Focus on a people-driven recruiting approach that reaches those who aren’t actively applying. This method is naturally compliant and much more effective.
3. Netflix and Warner Want to Sell You One More Bundle
Recap: Netflix and Warner Bros. Discovery are looking into offering a streaming bundle to reduce customer turnover and steady their revenue. After years of people getting tired of too many subscriptions, the plan is straightforward: instead of paying for several separate apps, users can get them together for a small discount. This approach is similar to what cable companies used to do and shows just how much strain the subscription model is facing.
This is a B2C story, but founders building SaaS should pay attention. Subscription fatigue is real. When consumers feel nickel-and-dimed, it spreads into their expectations at work too. People are tired of paying for ten different tools that all claim to be “critical,” only to use half of them once a quarter.
Netflix’s decision to bundle is not about innovation—it’s about staying in business. Even the biggest companies now realize that customers are fed up with too many separate subscriptions and want things to be simpler. This should be a clear signal to SaaS companies that adding more features isn’t enough; people want real, combined value.
The days of adding ‘just one more $20-a-month tool’ are ending. Customers now want fewer vendors, better integrations, and products that clearly earn their spot—without constant reminders or sales calls.
Advice:
If you’re creating SaaS in 2026, focus on bringing things together, not splitting them apart. Make your product essential, or join a bundle where your value stands out. The companies that help cut down on subscription overload will come out ahead.
That’s it for this week.
If you’re planning your 2026 team, your organization’s structure, or your talent strategy, now is the right time to get started. Q4 is when top performers set themselves apart.
If you want help figuring out who to hire, where to hire, and how to build a team that can deliver next year, I’m available to talk.
Until next time,
Joseph Burns
CEO & Founder, Lupa