The Briefing by Martin Peers, Jessica Lessin and the team at The Information

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The Briefing

By Martin Peers, Jessica Lessin and the team at The Information

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Recent Editions

Spotify CEO Daniel Ek. Photo by Bloomberg.

Spotify’s Finances Show Why Music Streaming Is a Terrible Business

By Martin Peers · Feb 10, 2022 8:45am PST · 6 comments

Investors have slowly awakened to the realization that video streaming, as exemplified by Netflix, is a high-cost venture with lots of competition and no guarantee of a cash payoff. The economics of music streaming, though, are even worse. Just look at Spotify. It’s no secret that music companies take most of the money Spotify collects.... Investors have slowly awakened to the realization that video streaming, as exemplified by...

Apple ad announcing new privacy options for blocking mobile ad tracking.

Ad Tech Startup Branch Raises $300 Million as Sector Survives Apple Crackdown

By Sarah Krouse · Feb 10, 2022 6:00am PST

When Apple launched a sweeping iPhone privacy change last year, it spelled trouble for the entire online ad industry, including companies that help advertisers and app developers measure whether mobile ads prompted consumers to make purchases. Facebook owner Meta Platforms and other ad sellers took a hit, but the intermediaries that measure... When Apple launched a sweeping iPhone privacy change last year, it spelled trouble for the entire...

KKR offices in London. Photo: Bloomberg

KKR Shows Private Equity’s Crypto Cravings; Dune Analytics Opens Window on Blockchain Data

By Akash Pasricha · Feb 9, 2022 5:45pm PST

Private equity has its sights set on crypto. The latest: KKR is considering an investment in Animoca Brands, a Hong Kong-based gaming company building metaverse products with blockchain, according to a Bloomberg report. The investment is said to value the company at over $5 billion.This story may sound familiar. In November, The Information... Private equity has its sights set on crypto. The latest: KKR is considering an investment in ...

Join the Special Forces of Tech Journalism

By Jessica E. Lessin · Feb 9, 2022 5:05pm PST

Join the Special Forces of Tech Journalism

By Jessica E. Lessin · Feb 9, 2022 5:05pm PST

Tech companies are the most powerful companies in the world. They are run by some of the most powerful people in the world. And most of what they do remains hidden in the shadows, obscured by complex processes and maneuvers. Here at The Information, we know technology. No organization has more expertise covering its power. We also know that... Tech companies are the most powerful companies in the world. They are run by some of the most...

Disney CEO Bob Chapek. Photo by Bloomberg.

The Risks of Disney’s Quick Fix for Subscriber Growth

By Martin Peers · Feb 9, 2022 5:00pm PST

Disney has figured out an ingenious way to jump-start its streaming subscriber growth—give people less of a choice! Since late December, Disney has automatically included Disney+ and ESPN+ in one of its Hulu offerings, at a slightly higher price than it previously charged, we learned today. Ingenious! It’s a reminder that the customer-unfriendly... Disney has figured out an ingenious way to jump-start its streaming subscriber growth—give people...

Former Twitch executive and creator Marcus Graham. Photo: Courtesy Marcus Graham

Creator Economy

The Tech Employees Who Are Also Creators

By Kaya Yurieff · Feb 9, 2022 2:00pm PST

This morning we published a feature on what you might call a side-hustle side effect: more workers at social networks that support creators are creators themselves. I spoke with former employees at companies like TikTok and Twitch, plus executives at creator-focused platforms Patreon and Cameo, about how both employees and companies are... This morning we published a feature on what you might call a side-hustle side effect: more...

One of the "calm" visual settings available in the Tripp VR app's composer tool. Credit: Tripp.

Finding Meditation’s Place in the Metaverse; Snap’s Spending Money

By Mathew Olson · Feb 9, 2022 11:00am PST · 1 comment

When Facebook bought Oculus, fitness was not a VR category people had high hopes for. But it now appears that all VR needed to make exercise apps an attractive business was wireless headsets. Could meditation be on a similar path?There’s certainly reasons to think so. Indeed, VR is already key to mindfulness or spirituality for some. There’s the... When Facebook bought Oculus, fitness was not a VR category people had high hopes for. But it now...

Art by Mike Sullivan

Why Startups Shouldn’t Worry About Inflation

By Tomasz Tunguz · Feb 9, 2022 9:00am PST · 3 comments

Art by Mike Sullivan

Why Startups Shouldn’t Worry About Inflation

By Tomasz Tunguz · Feb 9, 2022 9:00am PST · 3 comments

Startups have enjoyed a phenomenal decade. The confluence of low interest rates and flat costs enabled a thousand $1 billion flowers to bloom. To start off 2022, inflation has surged to multidecade highs. Meanwhile, the Fed hasn’t minced words in declaring its intent to raise interest rates. The market’s swift response: Valuation... Startups have enjoyed a phenomenal decade. The confluence of low interest rates and flat costs...

Illustration by Jesus Escudero

From TikTok to Twitch, Employees Juggle Conflicts While Moonlighting as Influencers

By Kaya Yurieff · Feb 9, 2022 6:00am PST

When Jenna Palek applied for a sales position at TikTok in the spring of 2020, she did something creative to help her get hired: She posted a 58-second clip of herself on the short video–sharing app highlighting her qualifications while performing dance moves popularized on TikTok. It worked. Palek nabbed the job after the video went... When Jenna Palek applied for a sales position at TikTok in the spring of 2020, she did something...

Etoro is among the crypto companies planning to go public via a SPAC this year. Photo: Bloomberg

A Wave of Crypto SPACs Approaches; Katie Haun’s Newest Hire

By Aidan Ryan · Feb 8, 2022 5:51pm PST

Can a wave of crypto SPACs shake the IPO market out of its doldrums? A group of blockchain startups and their merger partners is going to try. Despite a slow start for public listings this year, at least two crypto startups have already announced plans to go public via a merger with a special purpose acquisition company this year. More are... Can a wave of crypto SPACs shake the IPO market out of its doldrums? A group of blockchain...

Nvidia CEO Jen-Hsun Huang. Photo by Bloomberg.

What Demise of Nvidia-Arm Deal Says About Regulators’ Impact

By Martin Peers · Feb 8, 2022 5:00pm PST

It’s been an action-packed 24 hours in tech and, unlike most of the past month, the stock market didn’t drive today’s developments. If there is a common thread running through the latest news, it’s the specter of big tech companies expanding their market power. That’s most obviously true in Nvidia’s abandonment of its Arm acquisition, confirmed... It’s been an action-packed 24 hours in tech and, unlike most of the past month, the stock market...

How Often Meta and Facebook Execs Have Mentioned Reels (Chart)

How Often Meta and Facebook Execs Have Mentioned Reels (Chart)

By Mahira Dayal · Feb 8, 2022 3:30pm PST

How Often Meta and Facebook Execs Have Mentioned Reels (Chart)

Creator Economy

How Often Meta and Facebook Execs Have Mentioned Reels (Chart)

By Mahira Dayal · Feb 8, 2022 3:30pm PST

Meta Platforms’ earnings call last week was a clear indication of what the owner of Facebook and Instagram is focused on this year: Reels. In the earnings call for the fourth quarter, executives mentioned Reels 34 times and analysts used it another six, according to a transcript of the call. Combined, the 40 instances amount to a mention of the... Meta Platforms’ earnings call last week was a clear indication of what the owner of Facebook and...

From left: An Amazon fulfillment center, GoPuff advertisements in NYC; Instacart workers in a grocery store. Photos by Bloomberg

Amazon Talent Decamps For Instacart, Gopuff by the Hundreds

By Paris Martineau · Feb 8, 2022 1:35pm PST · 1 comment

Amazon has lost at least 200 corporate employees who defected to Instacart and Gopuff over the past year as the two delivery players scooped up talent to expand their logistics operations and build out their advertising businesses. Instacart’s and Gopuff’s hiring, the scope of which hasn’t previously been reported, includes... Amazon has lost at least 200 corporate employees who defected to Instacart and Gopuff over the...

A promotional image for Meta's upcoming Quest 2 Super Bowl ad campaign. Credit: Meta Platforms.

VR and AR at the Super Bowl; Tobii’s CEO on the Rise of Eye Tracking

By Mathew Olson · Feb 8, 2022 11:00am PST

Super Bowl ads don’t come cheap. This year, broadcaster NBC said that some 30-second spots sold for up to $7 million, setting a new record for what’s routinely the most-watched U.S. sports event. And this Sunday’s game is poised to include some of the biggest advertising pushes for immersive tech yet.Pepsi will integrate AR features as part of... Super Bowl ads don’t come cheap. This year, broadcaster NBC said that some 30-second spots sold...

Meta Platforms Org Chart: The Leaders Driving a Make-or-Break Reinvention

By Sylvia Varnham O'Regan · Feb 8, 2022 6:00am PST

As Facebook owner Meta Platforms charts an uncertain new direction into what CEO Mark Zuckerberg refers to as the metaverse, teams across the business have been undergoing shakeups amid a string of executive departures. More than 40 changes are reflected in our updated org chart of around 160 senior executives and managers at Meta, including... As Facebook owner Meta Platforms charts an uncertain new direction into what CEO Mark Zuckerberg...

SoftBank CEO Masayoshi Son (left) and Nvidia CEO Jensen Huang

Nvidia Disarmed: What’s Next After Aborted $66 Billion Acquisition of SoftBank-Owned Arm

By Josh Sisco and Stephen Nellis · Feb 7, 2022 8:57pm PST

SoftBank CEO Masayoshi Son (left) and Nvidia CEO Jensen Huang

Nvidia Disarmed: What’s Next After Aborted $66 Billion Acquisition of SoftBank-Owned Arm

By Josh Sisco and Stephen Nellis · Feb 7, 2022 8:57pm PST

Nvidia has called off its $66 billion acquisition of chip design firm Arm Holdings, ending an 18-month regulatory review process that had long been doomed because the deal drew opposition from many quarters of the semiconductor industry that depend on Arm’s technology. But the megadeal’s demise, first reported by the Financial Times... Nvidia has called off its $66 billion acquisition of chip design firm Arm Holdings, ending an...

A Coinbase sign in New York at the time of its April direct listing. Photo: Bloomberg

How Coinbase Reaped Rich Rewards for Late-Stage Private Investors

By Aidan Ryan · Feb 7, 2022 5:15pm PST

Coinbase has proven to be a disappointment for investors who bought soon after the crypto exchange’s April direct listing. But that’s far from the case with the handful of venture firms that snapped up shares in the company’s last private fundraising. As I wrote in a story on Friday, Tiger Global Management is a big winner here: Coinbase... Coinbase has proven to be a disappointment for investors who bought soon after the crypto...

A Rivian truck driving past the Nasdaq in New York the day of Rivian's IPO. Photo by Bloomberg.

The Problem With Amazon’s Big Rivian Gain

By Martin Peers · Feb 7, 2022 5:00pm PST

Here’s a puzzle: Did Amazon’s fourth-quarter profit rise or fall? Depending on what you read, it could be either. One metric, Amazon’s net income, nearly doubled while another, slightly nerdier metric called operating profits, fell by about half. It might sound confusing. But all anyone needs to know is that the net income increase was... Here’s a puzzle: Did Amazon’s fourth-quarter profit rise or fall? Depending on what you read, it...

Riley Bell, the creator behind the Instagram account @memequeen. Photo: Riley Bell

Creator Economy

Why Static Video Memes Are All Over Instagram

By Kaya Yurieff · Feb 7, 2022 3:39pm PST

A quirky form of video posts has taken over Instagram, the consequence of Meta Platforms’ recent push to prioritize Reels and other videos on its Facebook and Instagram apps as it counters the rise of rival TikTok. I’m dubbing this creator growth hack the static video meme. Here’s how it works: Creators who run photo-focused accounts, such... A quirky form of video posts has taken over Instagram, the consequence of Meta Platforms’ recent...

An illustration of the new "personal boundary" system in Horizon Worlds. Credit: Meta.

Meta’s Personal Space Patch; PC VR Figures and an Earnings Roundup

By Mathew Olson · Feb 7, 2022 11:00am PST

An illustration of the new "personal boundary" system in Horizon Worlds. Credit: Meta.

Meta’s Personal Space Patch; PC VR Figures and an Earnings Roundup

By Mathew Olson · Feb 7, 2022 11:00am PST

To sell people on the potential of AR and VR, Meta Platforms has often referred to “superpowers” that the technology can grant people, such as teleportation. Meta wants people to embrace these ideas not as sci-fi fancies, but as shorthand for how people will go about their lives with the aid of the metaverse. But a problem arises whenever Meta... To sell people on the potential of AR and VR, Meta Platforms has often referred to “superpowers”...