🎤 Spotify’s Covid content crackdown
![Spotify recording its Platform Policies [Vladimir Godnik via GettyImages]](https://cdn.robinhood.com/static_content/mwphzyq69oso/en-US/assets/files/JokuZZEtON7nPclLj5gCm_1_GettyImages-743692925.jpg)
Hey Snackers,
It’s the first day of February, and the first day of Black History Month — an opportunity to honor the struggles and achievements of Black Americans. Stay tuned for facts and stories covering the intersection of race, finance, and culture.
Stocks jumped yesterday to end a roller coaster month. The market-tracking S&P 500 index had its worst month since March 2020 (aka: when Covid lockdowns hit), falling 5% as investors brace for higher interest rates. Meanwhile, a Danish study found that the new Omicron variant is more infectious than the OG Omicron.
BTW: Happy Lunar New Year to all our Snackers celebrating the Year of the Tiger!
Spotify boosts its moderation transparency after celeb-driven backlash vs Joe Rogan’s Covid content
The rock ‘n roll revolt… just got an encore. Criticism from cultural icons has pushed Spotify to be more upfront about its moderation policies. Refresher: last week, Neil Young demanded that Spotify remove his tunes or remove Joe Rogan, the world’s most popular podcaster. The backlash was fueled by an interview Rogan published with a scientist who promoted Covid vaccine misinformation. Young pulled his music from Spotify, and Joni Mitchell said she’d follow. Then Brene Brown said she was pausing her Spotify-exclusive pod. Now, Spotify’s making amends:
- Spotify published its moderation policies, which weren’t publicly available before and weren’t clearly enforced consistently. For example: Spotify has removed thousands of episodes containing Covid misinfo, but not the Joe Rogan ep. The streamer has also removed dozens of Rogan episodes, but no vax-related ones.
- Spotify is working to add a content advisory to any Covid-related pods, which will direct listeners to a Covid hub with up-to-date, trusted info.
- Rogan’s response: In a 10-minute Insta video, Rogan said he would try harder to “balance out these more controversial viewpoints with other people’s perspectives” and that he’s happy to include a disclaimer on his pod.
Spotify’s having its “Facebook moment”... Facebook has faced major backlash for failing to rein in misinfo around important national issues (flashback to 2016 elections). Twitter, YouTube, and other social apps have also struggled with content moderation as they’ve grown — from regulatory probes to public backlash. Facebook has paid Accenture $500M per year to help moderate its platform, but still hasn’t regained user trust.
Stars have huge platform power… And if platforms lose stars, they could also lose users. Neil Young and Joni Mitchell successfully pushed Spotify to reverse its stance on Covid misinformation. And stars with even larger followings (cough, Taylor Swift) could push platforms further, as some viral tweets have flagged. Now that Spotify passed Apple as the world’s largest pod platform, stars and their fans could hold it to higher standards when it comes to sensitive issues like elections, public health, and climate change.
Coin exchange FTX hits a $32B valuation as crypto investments hit records, and some fear a “crypto winter”
Unicorns find shelter… More than $1T has been wiped from the crypto market since November, when it was worth $3T. Despite the crypto currency plunge, venture capital is doubling down on crypto companies. Bahamas-based crypto exchange FTX just raised $400M in its latest funding round, giving it a $32B valuation — getting it closer to rival Coinbase. FTX's app lets retail and institutional buyers make sophisticated crypto and token trades, as well as mint, auction, or trade NFTs. Its US sister exchange, FTX US, announced new funding at an $8B valuation last week:
- Fee’d Up: FTX makes its money off trading activity and fees, including a 5% fee to trade NFTs.
- Flashy Backers: FTX owns the naming rights to Miami Heat stadium and is the MLB's official crypto exchange. Power couple Tom Brady and Gisele Bundchen are also investors and brand ambassadors.
Wild ride for cryptos... Bitcoin and Ethereum, the two biggest cryptos, have fallen 40% from their highs as investors brace for inflation-fighting Fed moves and ditch riskier assets. It's been bumpy: bitcoin hit a one-year low in July, dropping to $30K, before more than doubling to its record in November. Now, it's on pace for its worst month since May. Despite the sell-off, venture funding for crypto has been booming. Venture investments in crypto and blockchain startups reached $33B last year — and are expected to surpass that this year.
It's too soon to tell if a "crypto winter" is here… Institutional crypto funds added a record $9.3B to their investment funds in 2021, and cryptos aren't alone in seeing declines: The Nasdaq index is down 10% this year. Also, on-chain action (aka the volume of crypto transactions and activity happening on blockchains) hasn't reached anywhere near 2018 levels when activity crashed. But some bears like JPMorgan CEO Jamie Dimon say crypto is worthless until there’s more regulation. Now, President Biden is reportedly planning moves: Barron's reported Biden is planning an executive order that could help set the stage for crypto and digital asset regulation.
What else we’re Snackin’
- Hike: The United Arab Emirates (UAE) plans to introduce its first-ever corporate tax rate, starting at 9% next June. It’s a major step towards a 136-country pact to make bigger companies pay at least 15% in taxes.
- Faux: Dolce & Gabbana became the latest lux brand to ban the use of fur, joining the likes of Gucci and Oscar De La Renta. Last year, Billie Eilish said she'd only wear an Oscar dress if it was furless.
- Duller: Gen Z favorite cosmetics brand Glossier laid off a third of its corporate staff (80 people) after hiring too quickly. The brand, valued at $1.8B in 2021, closed stores in 2020 amid racism complaints.
- Halo: Sony is dropping $3.6B to buy Bungie, the developer behind hit video game Halo. It’s been a big month for gaming deals: Microsoft bought Activision Blizzard for $70B and Take-Two bought Zynga for $13B.
- Tip: Domino’s said it’ll pay customers $3 to not get pizza delivered — read: to pick it up yourself. Dom’s hopes the “tips” will help ease delivery stress as it struggles with the national staffing shortage.
Tuesday
- Earnings expected from: Google, Alibaba, Exxon Mobil, UPS, Amgen, GM, Ferrari, EA, Match Group, Stanley Black & Decker, and Harley-Davidson
Authors of this Snacks own: Bitcoin, Ethereum, and shares of Apple, Spotify, Microsoft, Twitter, and Zynga
ID: 2017355