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🌍 Meta Considers Launching Paid, Ad-Free Facebook and Instagram in Europe

Today: Facebook/Instagram paid? | X to use data for AI | Google Maaps update

Author

Kristoffer Lindström
September 04, 2023

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It’s Monday, August 4th, and we've got some exciting headlines ready for you to dive into. Here are the top stories of the day:

  • Meta's Paid Social

  • Elon's AI Secrets

  • Arm's Big Gamble

  • CEO vs WFH Data

  • Apple's Sideloading Saga

  • Google Maps Makeover

  • Threads Late Feature

  • and more…

READ TIME: 5.3 MINUTES

Tech Companies

Meta is contemplating offering paid, ad-free versions of Facebook and Instagram in Europe. The move aims to address EU concerns over data privacy and advertising. No details on pricing or release date have been confirmed.

💡 Why does this matter?

Introducing a paid, ad-free tier adds consumer choice and aligns Meta more closely with EU privacy regulations. However, the success of this model hinges on the pricing strategy. Based on similar attempts like Twitter Blue and Xbox Pro, conversion rates to paid plans are generally low.

K.L - Business Edge

Senior staff at YouTube are worried that the platform's short-form video feature, Shorts, is cannibalizing its core business of long-form videos. Despite Shorts amassing over 2 billion users since its 2021 launch, internal discussions reveal concerns that long-form content, a more lucrative format, is "dying out."

💡 Why does this matter?

The rise of Shorts could be a double-edged sword for YouTube. While it attracts a younger audience, it risks diminishing the long-form content that brings in more ad revenue. This shift could impact content creators and advertisers who have traditionally relied on longer videos for better monetization.

K.L - Business Edge

Canada has proposed regulations for its contentious Online News Act, requiring social media giants to pay for news content. Meta remains defiant, continuing its news ban in Canada.

AI Corner

X has updated its privacy policy to collect user biometric and employment data, and plans to use this and other public data to train its AI models.

Google has updated its Search Generative Experience (SGE) to display the sources used for AI-generated search summaries. The feature aims to provide transparency and credit to third-party websites.

After a successful U.S. launch, Google is expanding its Search Generative Experience (SGE) to India and Japan. The feature, popular among 18-24-year-olds, allows for more conversational search queries.

Hiber3D has introduced a new game development tool that leverages Google's generative AI to create entire game worlds from simple prompts. While the tool aims to simplify game development and reduce costs, it has been criticized for generating environments lacking imagination and coherence, particularly when introducing complexity.

💡 What can we learn from this?

The tool highlights the limitations of generative AI in creative fields. While it may serve as a brainstorming device, it's not yet a replacement for human creativity.

K.L - Business Edge

Markets & Money

British chip designer Arm Ltd. is targeting a valuation between $50 billion and $55 billion for its upcoming IPO, set to be the largest of the year. The company plans to meet prospective investors next week ahead of its Nasdaq debut. SoftBank, Arm's current owner, aims to sell about 10% of the total shares in the offering. The IPO comes after a failed $40 billion sale to Nvidia due to regulatory issues.

💡 Why does this matter?

The IPO is pivotal for both Arm and SoftBank, potentially providing fresh capital for SoftBank's renewed focus on AI investments. The valuation and performance of Arm's IPO could also set the tone for the tech IPO market, which has recently seen a revival.

K.L - Business Edge

Insights & Analysis

Flannery Associates, backed by Silicon Valley bigwigs like Marc Andreessen and Laurene Powell Jobs, has spent $800 million to acquire around 52,000 acres of land in Solano County, northeast of San Francisco. The company aims to build a new city, although specific plans remain undisclosed. The land purchases have sparked government scrutiny due to concerns about potential foreign interests.

CEOs from major companies like Meta and Goldman Sachs are increasingly mandating employees to return to the office, citing productivity concerns. Recent studies, including one from the University of Chicago, support this view, showing a decline in productivity among remote workers. However, experts warn that a lack of flexibility could make companies less attractive to potential talent.

💡 What can we learn from this?

The push for office returns is backed by data, but companies should consider the trade-offs. A rigid return-to-office policy may deter talent seeking flexibility, especially those with significant bargaining power. A balanced, hybrid approach could be the most sustainable solution.

K.L - Business Edge

Apps & Gadgets

Apple has launched a new website, "Apps by Apple," to promote its in-house apps across various devices. The move comes as Europe considers allowing third-party app stores on iPhones.

Microsoft plans to discontinue Visual Studio for Mac, focusing instead on enhancing Visual Studio and VS Code for cross-platform development. Support will continue until August 2024.

Google Maps is testing a new mobile UI featuring altered colors for city blocks, streets, and natural areas, closely resembling Apple Maps.

Meta's Threads app, designed as a competitor to X, has introduced a basic search function two months after its launch. The feature only allows for profile searches.

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