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

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The Briefing

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

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Recent Editions

Screenshots from Cameo. Graphic: Mike Sullivan

Creator Economy

Lessons From Cameo’s Sales Shortfall; Talk of a ‘Creator Economy Winter’; Streaming Loses Some Luster

By Kaya Yurieff · May 19, 2022 3:05pm PDT

Our story earlier today detailing cooling demand and a slowdown in sales at celebrity-video shoutout app Cameo holds some warning signs for other creator economy startups and companies buoyed by the pandemic. Cameo’s operating expenses soared to nearly $79 million last year, from $30 million in 2020. That contributed to deeper losses:... Our story earlier today detailing cooling demand and a slowdown in sales at celebrity-video...

Brian Armstrong, chief executive officer of Coinbase Global Inc. Photo by Bloomberg.

Coinbase Slashes Costs, Freezes Hiring Amid Crypto Crash

By Mark Matousek and Aidan Ryan · May 19, 2022 1:08pm PDT

Cryptocurrency trading firm Coinbase, whose revenue has shrunk amid a downturn in the sector, is pausing new business projects, freezing hiring for two weeks and aiming to slash its cloud spending on Amazon Web Services, among other cost-cutting measures, according to a pair of internal emails sent to employees this week and viewed by The... Cryptocurrency trading firm Coinbase, whose revenue has shrunk amid a downturn in the sector, is...

Jeffrey Zirlin of Sky Mavis. Photo: Bloomberg.

A16z’s Gaming Metaverse Play; Cognixion’s Assistive Reality Progress

By Mathew Olson · May 19, 2022 11:03am PDT

As investment pulls back and tech stock sell-offs continue, leave it to Andreesen Horowitz to dangle a bit of hope for startups aiming to power through to the next boom. The Menlo Park firm announced Wednesday the creation of its first fund focused on the gaming industry, totalling $600 million. And though there’s a current of optimism for... As investment pulls back and tech stock sell-offs continue, leave it to Andreesen Horowitz to...

Art by Mike Sullivan

VR Is Failing the Very People It Could Benefit Most

By Brittan Heller · May 19, 2022 9:00am PDT · 1 comment

Art by Mike Sullivan

VR Is Failing the Very People It Could Benefit Most

By Brittan Heller · May 19, 2022 9:00am PDT · 1 comment

Consider this: In The Climb, a popular virtual reality game, any user can virtually scale skyscrapers and majestic cliffs simply by turning their head and gripping a trigger—any user, that is, except one with a muscular, skeletal or neurological disorder that makes even those movements impossible. Or consider this: In January 2020, MIT... Consider this: In The Climb, a popular virtual reality game, any user can virtually scale...

(L-R) Cameo CEO and founder Steven Galanis, and Cameo co-founders Devon Townsend and Martin Blencowe. Photo by Getty. Art by Mike Sullivan.

At Cameo, Boom Times Give Way to Sharp Sales Slowdown

By Kaya Yurieff · May 19, 2022 6:05am PDT

By the beginning of last year, six-year-old startup Cameo was on a tear. Pandemic-induced lockdowns in 2020 had spurred demand for the personalized video messages celebrities sell on its website and app. Co-founder and CEO Steven Galanis was gearing up for a major expansion that would more than triple its workforce from pre-pandemic levels and ... By the beginning of last year, six-year-old startup Cameo was on a tear. Pandemic-induced...

The Rivian R1T, with its pullout kitchen. Photo: Jamie Kelter Davis/Bloomberg

Think EVs Are Expensive? Try Buying a Used One

By Steve LeVine · May 19, 2022 4:00am PDT

The automobile industry has been hit harder than almost any sector by the pandemic-led upheaval in the global supply chain. For more than a year, automakers have been forced to scale back production because of shortages of chips, lithium-ion batteries and other parts, leading most recently to steep drops in revenue and their share prices. One... The automobile industry has been hit harder than almost any sector by the pandemic-led upheaval...

Jeff Bezos. Photo by Bloomberg.

As Amazon Stock Tanks, Bezos Makes Jokes

By Martin Peers · May 18, 2022 5:00pm PDT

What is happening to our world? Not only is the stock market in free fall (again), but Jeff Bezos appears to have been infected by a Musk-like bug that causes business executives to lose their inhibitions on social media. Today, for instance, as Amazon stock was dropping 7%, the Amazon founder was tweeting about how he’s been working hard on his... What is happening to our world? Not only is the stock market in free fall (again), but Jeff Bezos...

Stéphane Ouellette, CEO and co-founder of FRNT Financial. Photo: FRNT. Art by Mike Sullivan.

What the Crypto Meltdown Means for Latecomers

By Akash Pasricha · May 18, 2022 4:00pm PDT

Stéphane Ouellette, CEO and co-founder of FRNT Financial. Photo: FRNT. Art by Mike Sullivan.

What the Crypto Meltdown Means for Latecomers

By Akash Pasricha · May 18, 2022 4:00pm PDT

After stablecoin Terra USD (UST) and its sister token Luna both crashed last week, investors and founders are regrouping to wrap their heads around the longer term fallout. Sure, the stablecoin fiasco helped fuel a broader selloff that everyone saw front and center; the market cap of all cryptocurrencies is less than $1.3 trillion, down... After stablecoin Terra USD (UST) and its sister token Luna both crashed last week, investors and...

Art: Mike Sullivan

Creator Economy

TikTok Curbs the Copycats; A Metaverse Startup Beloved by Female Gamers Is Also Profitable

By Mahira Dayal · May 18, 2022 3:18pm PDT

TikTok thrives on viral videos: users replicating dance steps, copying video formats and reusing ideas. But creators have long complained about TikTokers who copy their work but neglect to credit their ideas. TikTok is finally trying to change that. The app on Wednesday announced new ways to tag and credit creators in video descriptions, a... TikTok thrives on viral videos: users replicating dance steps, copying video formats and reusing...

A meeting in Horizon Workrooms. Credit: Meta Platforms.

Nick Clegg’s Stab at Hyping Up the Metaverse

By Mathew Olson · May 18, 2022 11:00am PDT

When Nick Clegg was promoted to be President of Global Affairs at Meta Platforms earlier this year, it was clear that one of his big responsibilities was handling heat from governments, freeing up Mark Zuckerberg to talk up the metaverse to anyone who will listen. But it seems you can’t be a higher-up at Meta without cheerleading the metaverse,... When Nick Clegg was promoted to be President of Global Affairs at Meta Platforms earlier this...

Netflix Cancellations Rise Among Long-Standing Subscribers

By Jessica Toonkel · May 18, 2022 6:00am PDT · 5 comments

Netflix is losing its grip on long-standing subscribers. New data show that people who have been subscribers to Netflix for more than three years accounted for a significantly greater share of cancellations in the first quarter than they did two years earlier. The data help illuminate why Netflix’s subscriber growth stalled suddenly in the... Netflix is losing its grip on long-standing subscribers. New data show that people who have been...

Jonah Hill. Photo by AP

Musk-Twitter Drama Jumps the Shark

By Martin Peers · May 17, 2022 5:00pm PDT

Jonah Hill. Photo by AP

Musk-Twitter Drama Jumps the Shark

By Martin Peers · May 17, 2022 5:00pm PDT

We’re now at that part of the Elon Musk–Twitter drama where—as happens for some long-running TV shows—the plotline has gone off the rails. Of course, this isn’t a TV show, although there likely will be one, and I nominate Jonah Hill to play Elon Musk. And what seems off the wall is just life in Musk’s world. It’s a little like the alternate... We’re now at that part of the Elon Musk–Twitter drama where—as happens for some long-running TV...

Art: Mike Sullivan

Creator Economy

Real Estate Agents Turn TikTokers; Picsart Layoffs; Twitter’s Exodus

By Mahira Dayal · May 17, 2022 2:59pm PDT

TikTok is changing the housing market. The #nycapartments hashtag on the ByteDance-owned app has more than 100 million views; #apartmenttour has 1.3 billion. With that kind of visibility, real estate firms and agents are increasingly setting up TikTok accounts, often as a way to reach Gen Z and millennial buyers, who together make up 39% of home... TikTok is changing the housing market. The #nycapartments hashtag on the ByteDance-owned app has...

Screengrab of Hovhannes Avoyan, CEO of PicsArt, via YouTube.

Picsart, a Photo-Editing Startup Backed By SoftBank, Cuts 8% of Workforce

By Mark Matousek and Amir Efrati · May 17, 2022 1:39pm PDT · 4 comments

SoftBank-backed photo- and video-editing startup Picsart has laid off 90 employees, or around 8% of its workforce, a company spokesperson confirmed to The Information. Picsart is the latest tech firm to pull back on growth amid a turbulent time in the markets. Picsart is also at least the third SoftBank-backed firm to cut staff in recent weeks,... SoftBank-backed photo- and video-editing startup Picsart has laid off 90 employees, or around 8%...

Finding Resources for International Expansion Might Be Easier Than You Think

By The Information Staff · May 17, 2022 12:10pm PDT

The Information hosted an event, Fintech: Women in Tech Leadership Forum, to explore trends and developments in the financial services sector as it’s been transformed by technology. In partnership with Singapore Economic Development Board, the event integrated fireside chats, live Q&A and breakout masterclass sessions to maximize... The Information hosted an event, Fintech: Women in Tech Leadership Forum, to explore trends and...

The glass cube entryway at Apple's New York City flagship store. Photo: Bloomberg.

The New Details on Apple’s Long Headset Journey

By Mathew Olson · May 17, 2022 11:00am PDT

The glass cube entryway at Apple's New York City flagship store. Photo: Bloomberg.

The New Details on Apple’s Long Headset Journey

By Mathew Olson · May 17, 2022 11:00am PDT

We’ve known for years now that Apple is developing both a mixed reality headset and AR glasses, and while The Information and other publications have regularly trickled out details on the former, CEO Tim Cook has not shied from talking up AR as “the next big thing.” Only now are we getting a better idea of exactly how and why Apple kept at this... We’ve known for years now that Apple is developing both a mixed reality headset and AR glasses,...

Apple's Tim Cook (clockwise from top left), Bob Iger, Al Gore and Mike Rockwell. Images by Bloomberg, Shutterstock. Art by Mike Sullivan.

The Inside Story of Why Apple Bet Big on a Mixed-Reality Headset

By Wayne Ma · May 17, 2022 6:00am PDT · 10 comments

In 2016, Apple’s board of directors gathered inside one of its buildings in Cupertino, Calif., for a glimpse into the company’s future. Former Vice President Al Gore, then–Disney CEO Bob Iger and other Apple board members walked from room to room, trying out prototype augmented and virtual reality devices and software. One of... In 2016, Apple’s board of directors gathered inside one of its buildings in Cupertino,...

CATL headquarters and production facilities in China. Photo by Bloomberg

CATL Could Make Battery Swaps Pay Off, Finally

By Steve LeVine · May 17, 2022 5:00am PDT

Today's column is our second from Dalibor Petkovic, a freelance researcher specializing in Chinese industrial policies. Since 2017, he has focused on the Chinese EV market, as well as smart cities, urban logistics and battery recycling management.There are two ways to recharge an electric car: Plug it in, or replace a depleted battery with... Today's column is our second from Dalibor Petkovic, a freelance researcher specializing in...

Elon Musk. Photo by Bloomberg.

Musk Throws Shade at Twitter CEO (and Securities Rules)

By Martin Peers · May 16, 2022 5:00pm PDT · 1 comment

It’s day 43 in the Elon Musk–Twitter saga—and things are getting even weirder. Today we witnessed the bizarre spectacle of Elon Musk tweeting a poop emoji at Parag Agrawal after the Twitter CEO tried to clarify the company’s procedures for keeping spam bots at bay. A short time later, Bloomberg reported that Musk had told a private conference in... It’s day 43 in the Elon Musk–Twitter saga—and things are getting even weirder. Today we witnessed...

Saturday's mass shooting at a Tops supermarket in Buffalo was livestreamed on Twitch. Photo by AP.

A Mass Shooting Streamed on Twitch Renews Calls for Social Media Controls

By Kaya Yurieff · May 16, 2022 2:00pm PDT

Saturday's mass shooting at a Tops supermarket in Buffalo was livestreamed on Twitch. Photo by AP.

Creator Economy

A Mass Shooting Streamed on Twitch Renews Calls for Social Media Controls

By Kaya Yurieff · May 16, 2022 2:00pm PDT

A racially-motivated mass shooting at a Buffalo grocery store over the weekend, which left at least 10 people dead, has rekindled calls for social media platforms to do more to wipe out hate speech and and act more quickly to handle violent broadcasts. The man identified by police as the shooter livestreamed the attack on Amazon-owned ... A racially-motivated mass shooting at a Buffalo grocery store over the weekend, which left at...