Good morning. Today, Paramount hopes to move past its trouble with President Trump; Netflix aims to expand its ad-friendly programming; the maker of Modelo Especial says consumer concerns are hurting sales; and you predict the future for agencies and AI.

Paramount Global said it has agreed in principle to pay $16 million to settle a lawsuit with President Trump over the editing of a “60 Minutes” interview with former Vice President Kamala Harris, Jessica Toonkel reports.

The lawsuit alleged that CBS News deceitfully edited a “60 Minutes” interview with the Democratic presidential candidate to make her sound better. It sought $20 billion in damages.

CBS has said the broadcast was “not doctored or deceitful.” But the lawsuit has hung over its parent company’s planned merger with Skydance Media, which the Federal Communications Commission has been reviewing.

The settlement comprises payments made to the president’s future presidential library and legal fees.

It doesn’t contain an apology, which Trump had sought, but does stipulate that “60 Minutes” will release transcripts of interviews with future presidential candidates after they have aired.

Netflix is trying to add more music and celebrity programming partly as a way to strengthen its appeal to advertisers, Jessica Toonkel writes.

The streamer has held conversations with Spotify about partnering on projects such as a music awards show or a live concert series, people close to the conversations said. It has also discussed doing big celebrity interviews and shorter-turnaround documentaries to capture the news of the moment, some of the people said.

Netflix has already said it is rebooting the classic talent contest “Star Search” and next week will introduce a mashup of “Love Is Blind” and “The Voice” called “Building the Band.”

Finding family-friendly programming that appeals to global audiences is key to Netflix’s work building its ad-supported subscription tier.

Constellation Brands posted lower profit and sales in its latest quarter, as wide consumer weakness, including among its core Hispanic demographic, continued to weigh on beer and wine sales, Kelly Cloonan writes.

The U.S. importer of Modelo and Corona beers cited “non-structural socioeconomic factors” behind a 6% drop in sales. Its survey research found that consumers’ concerns about personal finances led to fewer social gatherings and less shopping in convenience stores and gas stations.

The challenges are evident with Hispanic shoppers, which Constellation executives have previously noted were spending less amid fears of immigration crackdowns.

Constellation said its beer sales in the latest quarter slumped most in areas with larger Hispanic populations within its top markets.

After Barclays downgraded three big ad holding companies, saying AI will pose a challenge in the short term, I asked yesterday how you think the tech will play out for agencies. Here’s just some of what you sent back:

If the speed of innovation is relatively slow, independent and holding group agencies alike may benefit from the advent of AI. Automation such as programmatic media buying already enables agencies to manage eight-figure budgets using just two people. It’s possible that AI will play a similar role in allowing agencies to ‘uplevel’ their offering while remaining competitive.   —Hyun Lee-Miller, chief media officer at Good Apple

Clients will gravitate to agencies willing to transparently share learnings through the transition and pass along savings without delay. So the smaller, more nimble AI-advocators will win short-term. Longer term, the mega agencies will of course apply their heft and resources and be the drivers and profiters.   —Beth Hallisy, communications consultant

Tech platforms a la Meta might know consumers intimately, which is great for the long tail of SMB advertisers, but agencies know large businesses and brands intimately. If anything I’m bullish, as holdco agencies are going to be able to leverage bigger business and brand contexts than indie agencies, and expand the reach and output of their talent thanks to AI.  —Anthony Hamelle, chief innovation officer at TBWA\Chiat\Day NY

As a media buyer in the media and entertainment space, I often resented our agency, thinking, ‘Why do I need these people?’ My team knew our IP and our customers/audiences better. Following a stint at one of the big tech platforms, I am even more convinced that brands will build more in-house capabilities and buy directly from big tech companies. No one wants a markup.   —Name withheld by request

Most agencies years ago devolved from creating business-building ideas to being project-managed ad factories, so AI is just the next step.   —Steve Schildwachter

Ironically, AI may force a renewed focus on people over process and insights over data, because when everyone has access to the same tools, it will be the clarity and creativity of your message that breaks through.   —Tim Maleeny, president of agency solutions at Quad

A $79.95 popcorn bucket for “Fantastic Four: First Steps” is the latest escalation in the battle sparked by the viral tub sold at screenings of “Dune: Part Two.” [WSJ] 

AMC Theaters now tells ticket buyers on its site that pre-show ads and trailers mean their movies start 25 to 30 minutes after listed showtimes. [The Verge] 

The Kodak brand is growing again overseas through licensing deals that put its logo on goods including flashlights, paint, TVs and clothes. [NYT]

Target is reportedly testing shipping products directly to consumers from factories, but some observers say it should concentrate on reigniting its core business first. [Modern Retail] 

Upscale grocery chain Erewhon introduced a smoothie flavor inspired by a Dedcool perfume. [Glossy]