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Amazon expands music catalog from 2M to 100M songs for Prime subscribers • ZebethMedia

To get a roundup of ZebethMedia’s biggest and most important stories delivered to your inbox every day at 3 p.m. PDT, subscribe here. The discussion is on in the newsroom as to whether folks are eager to pay between $8 and $20 per month for their blue checks on Twitter. Alex’s take was particularly sharp… “Not in the mood to finance your vanity project,” indeed. — Christine and Haje The ZebethMedia Top 3 Startups and VC TouchBistro, an iPad-based restaurant management platform, secured $110 million in growth financing from Francisco Partners to accelerate its growth, expand its product pipeline and make some strategic acquisitions, Christine reports. How’s this for some dodgy rhymes: Prepare to amortize: Inflation may spell doom for R&D tax expensing Image Credits: Fancy/Veer/Corbis (opens in a new window) / Getty Images The U.S. federal government has made R&D tax credits available for decades, but a major change set to take place this year will impact startups across the board. Previously, R&D expenditures could be expensed up front, but now “those expenses will need to be amortized over 5 years in the case of domestic research, and 15 years for foreign research,” according to tax attorney Andrew Leahey. Because so many startups “incur the bulk of their R&D costs in their first year of operation,” many could wait “the equivalent of a lifetime” to recover those expenses. High inflation has stalled efforts to repeal the amortization requirement, so Leahey shares several tactics companies can use “to prepare for the possibility of the rule coming into effect.” Three more from the TC+ team: ZebethMedia+ is our membership program that helps founders and startup teams get ahead of the pack. You can sign up here. Use code “DC” for a 15% discount on an annual subscription! Big Tech Inc. As always, we have all the Twitter news that’s fit to post. We promise to keep it to a minimum today because there is other fantastic news to share. However, we do want to point out that Elon Musk likes to work out his thought process in tweet form now, so news is changing as the wind blows. Here’s what you need to know today: Musk continues to talk up his plans for Twitter Blue and ad-free news articles (both by Ivan), while Amanda reports on the company’s chief customer officer Sarah Personette, who resigned today. The move is quite surprising, given that she tweeted positively about a conversation with Musk last week. Meanwhile, over at Mastodon, things are happening, Sarah writes. And we have five more for you:

They’re not going to ban TikTok (but…) • ZebethMedia

We’ve been hearing for years how TikTok hoovers up data globally and presents it to its parent company in China, and potentially thence to the powers that be. But despite renewed calls today from FCC Commissioner Brendan Carr, the popular app is very unlikely to be outright banned. That doesn’t mean it will be allowed to carry on with impunity, though. Commissioner Carr’s opinion appeared in an interview with Axios, during which he stated that he doesn’t believe “anything other than a ban” would be sufficient to protect Americans’ data from collection by Chinese companies and authorities. (To be clearhis is him expressing his own position, not the FCC’s; I asked two others at the agency for comment and have not received any response.) This isn’t the first time Carr has voiced this idea. After BuzzFeed News reported data improprieties implied by leaked internal communications, he wrote in June to Apple and Google calling the app an “unacceptable national security risk” and asking the companies to remove it from their app stores. They didn’t, and now it’s back to the question of federal action — first pondered by the Trump administration, which despite many actions restricting China’s reach in the U.S. never managed to get a lock on TikTok. The reason for that is pretty simple: it would be political self-sabotage. TikTok is not just a wildly popular app, it’s the liferaft to which a generation that abandoned the noble ships Facebook, Instagram, and soon Twitter have clung for years. And the reason why is that American companies haven’t come close to replicating TikTok’s feat of algorithmic addiction. TikTok’s success in gluing Gen Z to their phones isn’t necessarily a good or bad thing — that’s a different discussion. Taking as a given its place in the zeitgeist, however, it makes a ban politically risky for multiple reasons. First, it would be tremendously unpopular. The disaffected-youth vote is supremely important right now, and any President, Senator, or Representative who supports such a ban would be given extreme side-eye by the youth. Already out of touch with technology and the priorities of the younger generation, D.C. would now also be seen as fun police. Whether that would drive voters to the other side or just cause them to not vote, there aren’t any good outcomes. Banning TikTok does not secure votes and that is fatal before you even start thinking about how to do it. (Not to mention it kind of looks like the government intervening to give flailing U.S. social media companies a boost.) Second, there isn’t a clear path to a ban. The FCC can’t do it (no jurisdiction). Despite the supposed national security threat, the Pentagon can’t do it (ditto). The feds can’t force Apple and Google to do it (First Amendment). Congress won’t do it (see above). An executive order won’t do it (too broad). No judge will do it (no plausible case). All paths to bans are impractical for one reason or another. Third, any effective ban would be a messy, drawn-out, contested thing with no guarantee of success. Imagine that somehow the government forced Apple and Google to remove TikTok from their stores and remotely wipe or disable it on phones. No one likes that look — the companies look too weak and too strong, letting the feds push them around and then showing off their power to reach out and touch “your” device. An IP-based ban would be easily circumvented but also set another unpleasant censorship precedent that ironically would make the U.S. look a lot more like China. And even should either or both of these be attempted, they’d be opposed in court by not just ByteDance but companies from around the world that don’t want the same thing to happen to them if they get a hit and the government doesn’t like it. For those reasons and more, an outright ban by law, decision or act of god is a very unlikely thing. But don’t worry: there are other tools in the toolbox. If you can’t beat ’em, bother ’em Image Credits: Bryce Durbin / ZebethMedia The government may not be able to kick TikTok out of the country, but that doesn’t mean they have to be nice about letting them stay. In fact, it’s probable that they’ll do their best to make it downright unpleasant. The company and service exists in something of a loophole, regulator-wise, like most social media companies. The addition of Chinese ownership is both a complicator and an opportunity. It’s more complicated because the U.S. can’t directly affect ByteDance’s policies. On the other hand, as a “foreign adversary,” China’s ascendancy over private industry is a legitimate national security concern and policy can be shaped around that. This involves various more independent agencies that are free to set rules within their remits — the FCC can’t, in this case, make a case. But what about the Commerce Department? Homeland Security? The FTC? For that matter, what about states like California? Rule-making agencies have a free hand — and like tacit Congressional backing — to extend their own fiefdoms to the edges of TikTok, with national security acting as a catch-all reason. If Commerce adds “connected software applications” to supply chain security rules as it has proposed, suddenly the data coming and going through the app is arguably under its protection. (This would all be shown in various definitions and filings at the time of the rulemaking.) What if TikTok’s source code, user data, and other important resources were subject to regular audits to make sure they complied with cross-border data supply chain rules? Well, it’s a pain in the neck for ByteDance because it needs to scour its code base to make sure it isn’t giving too much away. Having to prove that it handles data the way it says it does, to the satisfaction of U.S. authorities given free reign to be picky — not pleasant at all. And that’s just from a relatively quick rule

Twitch opens Guest Star up so anyone can run their own talk show now • ZebethMedia

With its biggest product launch in years, Twitch is betting on a near future of the platform that features more dynamic conversations, expanding its current focus beyond mostly solo streamers. Through a new tool called Guest Star, which launched in a limited beta earlier this year, streamers can now easily pull other creators and fans into their streams for talk show-like experience. Guest Star makes it possible for anyone to pull up to five speakers into a stream at once. Creators can can host and manage guests from Twitch Studio and OBS, the streaming software of choice for many of the app’s more advanced creators. Guest Star can be enabled through the creator dashboard where it’s now available to everyone. Image Credits: Twitch With Guest Star, streamers can directly invite guests or tap members of chat to join. Viewers in chat can also ask to be featured on stream, providing another way for creators to incentivize and reward their supporters. Hopping into someone else’s stream just requires clicking a pop-up notification and guests can join with either video or just audio enabled, a setting that the host can determine and toggle on and off. Moderation tools give hosts a few ways to manage what guests do, including controlling their audio levels, disabling video like we mentioned and ultimately giving them the boot if they misbehave. Twitch’s suspicious user detection feature adds a layer of safety for hosts looking to choose members of chat to bring into a stream. As an additional safety layer, only phone-verified Twitch users can appear as guests and a digital “backstage” area makes it possible to lay out ground rules and coordinate before Twitch sees Guest Star as a natural evolution of the success it’s seen in the “Just Chatting” category, which has exploded since 2020. Comparing the first five months of 2022 to the first half of that year, hours watched in the category shot up 151% and Just Chatting creator revenue grew 169%.

YouTube begins selling streaming subscriptions with its new streaming hub, ‘Primetime Channels’ • ZebethMedia

YouTube is bringing more streaming services to its platform in the U.S. with a new feature, “Primetime Channels,” allowing consumers to subscribe and watch content from over 30 services within the YouTube app. The company has signed up with streaming partners like Paramount+, Showtime, Epix, Starz, AMC+ and more. The new feature is in YouTube’s Movies & Shows hub, which can be found in the Explore tab. From there, users can sign up for various channels. Then, the channels will appear directly on the YouTube homepage. Now, users can discover MrBeast’s content alongside other streaming titles like “1883,” “The Chi” “Star Trek: Picard,” Anne Rice’s “Interview with the Vampire” series, and more, all on one feed. Users will get a personalized experience that includes recommended shows and movies, as well as curated trailers, behind-the-scenes footage and cast interviews, the company said. The offering is only available to U.S. users, but YouTube plans to expand to international users in the future. The company is also looking to work with more streaming partners and add channels over time, it noted. Image Credits: YouTube Paramount+ is currently the biggest Primetime Channel on the platform in terms of its subscriber base, and YouTube isn’t its only notable distribution partner. The streamer also recently partnered with The Roku Channel and Walmart, where it’s now a part of the Walmart+ subscription. “We are excited to expand our partnership with YouTube to offer customers of Paramount+ another way to stream the content they love,” Jeff Shultz, Chief Strategy Officer and Business Development Officer at Paramount Streaming, said in a statement. “This new feature gives us the opportunity to expand our presence on YouTube, broadening our reach and giving consumers even more choice when it comes to streaming the best in entertainment.” With its new streaming subscription hub, YouTube will now compete with tech giants Amazon, Roku, and Apple. Plus, the move makes sense for the company as 2 billion users already go to the platform to watch content about their favorite movies or shows. The feature is also a much-needed upgrade from its 12-year-old Movies category, which gives consumers access to full-length films. Earlier this year, YouTube recently announced free, ad-supported TV shows as well. The launch of Primetime Channels comes a few months after YouTube TV rolled out a new plan that allows subscribers to pick and choose from over 20 add-on channels. Primetime Channels available at launch include: Showtime Paramount+ Starz AMC+ Epix Shudder Acorn TV Here TV Curiosity Stream Comedy Dynamics Up Faith & Family Hallmark Movies Now ALLBLK Sundance Now ViX+ ConTV DocuRama Moviesphere Dove Channel IFC ScreenPix Fandor Law & Crime Screambox Dekkoo Tastemade+ Outside TV+ Gaia Atres Player VSiN Topic Magnolia Selects The Great Courses

Everything is stupid and bad right now; maybe this $200 portable turntable will fix it • ZebethMedia

Yeah, yeah. I know. Buying a record player isn’t going to fix everything that’s broken. But it was a nice thought, however fleeting. Long before the iPod, this strange mutant existed. Too weird to live, too strange to die, as someone once famously put it. The Audio-Technica Sound Burger — as it has affectionately come to be known — has also felt like a glimpse into some alternate timeline, where vinyl records didn’t have to go away entirely to make a resurgence. Obviously the size of a 12-inch LP immediately mitigates any pretension of portability, so in the era of the Walkman, a product like this was always destined to be an evolutionary dead end. That, of course, hasn’t stopped countless companies from producing countless knockoffs in the intervening decades. Nor, thankfully, has it precluded Audio-Technica from taking another spin with the delightful AT-SB2022. The newly announced take on the form factor is priced at $199 and is — understandably — a limited edition. The release was specifically timed to coincide with the company’s 60th anniversary. Unlike its ancestor, which was built with wired headphones in mind (and shipped with a pair for that matter), this version has built-in connectivity, so you can pair it with a wireless headset or speakers. There’s also a built-in battery rechargeable via USB-C that can get up to 12 hours in a single go. So, it’s not going to make all the bad news go away, but it sure would be a lot of fun to bring along for an afternoon of crate digging. Image Credits: Audio Technica If your pockets are considerably deeper, there’s always this fully transparent limited edition AT-LP2022 available for a cool $1,200. The belt-drive-operated manual turntable sports a Shibata stylus and carbon-fiber tonearm, all for the price of six Sound Burgers. If that’s not enough, there’s always this $9,000 stereo cartridge with a lab-grown diamond. Maybe that will help drown out the news for a bit.

Catch these rising startups exhibiting at TC Sessions: Crypto • ZebethMedia

Even when a chill venture wind blows, you’ll find daring entrepreneurs forging ahead, and we’re here to highlight the outstanding early-stage startups in the world of blockchain, cryptocurrency, DeFi, NFT and web3. You’ll find them exhibiting at TC Sessions: Crypto on November 17 in Miami, and what better way to check them out than to buy a pass, get out from behind your screen and come talk to them in person? Check out the eight listed below. You can learn more about five more exhibitors here — and another five exhibitors here. Cityverse: Cityverse is a virtual overlay for a physical city. Powered by local news, a Cityverse connects the community through information, ideas and experiences. Lifo Inc: Tokenized CRM for web3. It aims to become the web3 equivalent of Salesforce. GreenCard: This startup offers digital payment options for cannabis purchases. Howlite: Aims to provide secure, transparent, inexpensive and easy-to-use payments using distributed ledger technology — where traditional payments meet web 3. String Blockchain: A layer-1 blockchain build designed for developers building dApps for everyday use. Poolit: Unlocks access to exclusive alternative investments for as little as $1. Ponds: A web3 copyright licensing platform designed for creators to license their digital content directly to end users. MARPs Club: Defines a new concept, “MARP” (Mass Arts Representative Piece), based on NFTs to accredit value to Mass Art’s artworks Don’t miss your chance to meet, connect and network with some of the most creative early-stage startups bent on redefining the future of finance, blockchain and the web at TC Sessions: Crypto on November 17. Buy your pass now and save $150 — before the early-bird pricing disappears. We’ll see you in Miami! Is your company interested in sponsoring or exhibiting at TC Sessions: Crypto? Contact our sponsorship sales team by filling out this form.

Heylo wants to help you build your own little social circles for events • ZebethMedia

If you’ve worked at large tech companies, you’ve probably seen that a bunch of groups show up, whether officially or unofficially. Google calls ’em Employee Resource Groups (ERG), Facebook has its internal version of Facebook with groups, and other orgs have systems that range from listservs that have been running since the 1990s, to internal Slack groups, or perhaps a Mighty Network or two. Heylo just raised some money to bring these types of special interest groups to startups and companies of all sizes, giving employees a way to help each other in novel ways. “After working at Google and other corporate jobs for a decade, a sense of purpose was missing in my life. I tried new activities — running, reading and even teaching myself how to do a backflip. But after years, I still felt empty because I was pursuing these activities alone,” said Eric Winters, Heylo’s CEO & founder, in an interview with ZebethMedia. “I tried to join groups, but struggled to belong. After years of searching, I finally found the right group. It changed my life. I had experiences I could never imagine and met people I never knew existed. Too many people feel the way I did — a little lost, a little lonely. I found my calling by helping people belong to great groups.” Heylo was founded in 2019, by Xooglers (that’s ex-Googler) Eric Winters and Brandon Pearcy. They bootstrapped the company to profitability, and today announced they raised $1.5 million in a round led by Worklife Ventures to bring their product to the whole world. One of the core problems the group solves is payments; if you’re arranging an outing at work, receiving payments in cash or Venmo is possible, of course, but that gets messy once you scale your event past 30 or so; who has paid, who hasn’t, what-have-you. In addition to payments, the software streamlines group chats, event details, DMs among members, booking and waitlist features, etc. The lead investors are Charles Hudson from Precursor Ventures and Brianne Kimmel from Worklife. “Before the pandemic, millions of people had much simpler lives. They went to an office every day and their co-workers were often their most important relationships. Now, with remote work, people have lost that workplace camaraderie and must proactively cultivate relationships based on common interests,” said Brianne Kimmel of Worklife Ventures. “New kinds of social groups are on the rise: running groups, kayaking groups, book clubs, roller skating, volleyball, it’s endless. I see Heylo as being the glue and toolkit that makes these groups easy to organize and manage. More importantly, I see Heylo as a catalyst for the creation of groups that wouldn’t otherwise exist.” “Charles has been a seed investor for over 20 years. He has seen all the pitches and advised companies large and small. Moreover, he’s a sincere and genuinely good person. He knows everyone, and you can’t find anyone to say a bad thing about him. We are huge beneficiaries of his expertise and network,” said Winters. “Brianne is a leader herself. Worklife brings people together, literally, in their community spaces. Brianne has been instrumental in hiring and go-to-market strategy. She encourages us to think big and make a meaningful impact on the leaders we support.” By day, Josh Goldman is a doctor at UCLA. By night, he is the co-founder of the Electric Athletic Club, a social fitness group. He has grown EAC to multiple cities throughout the US and unites his members through active, social lifestyles. Image Credit: Heylo / Michael Rodmaker The company’s near-term goal is to help group members get so much value from their group that they are happy to pay for it, in turn using that as leverage not only to provide resources for leaders, but it increases participation and engagement from members. Under the mantra “We value what we pay for,” Heylo has helped groups launch memberships, host paid events and receive donations. The company claims that in many cases, its platform offered the first time for leaders to receive meaningful money from their group. “Heylo has collected over $500,000 for our initial cohort of leaders, and their groups are growing and engaged more than ever,” says Winters, He explains his longer-term vision: “Heylo will change the paradigm for leaders. No longer will leading a group be a cost center in their life. It can become a financially viable pursuit — one that is equally fulfilling and entrepreneurial. We want to inspire the next generation of creators to lead groups. The world doesn’t need more content or online products. We need more leaders who can build community and make a positive impact on their members.”

Facebook expands its professional mode profile setting to all creators globally • ZebethMedia

Meta has announced the global expansion of its professional mode profile setting on Facebook to all creators. Professional mode is designed to be used by creators looking to monetize their followings on the social network. Facebook began testing professional mode with select creators in December 2021 and is now offering it to anyone on its platform. Professional mode is somewhat similar to Pages in the sense that it gives creators a separate profile to build their presence on the social network. In a blog post, Facebook said that it sees professional mode as a way to “build a public following, earn money from various monetization programs, and connect with your audience in more meaningful ways.” The profile setting gives creators access to monetization features and analytics tools, such as Facebook’s Reels Play bonus program that allows you to earn money for the reels you share. Professional mode also gives eligible creators access to Stars, which lets you earn money directly from followers on reels, live and video on demand. In-stream ads will also be launching to eligible professional mode creators, which gives them the opportunity to earn money by enabling ads before, during or after longer videos on demand on Facebook. The company is also testing ads on Facebook Reels on professional mode with a select group of creators across the globe. The company says the ad format integrates into reels by placing ads on reels or in between looping reels. Creators on professional mode also get access to subscriptions, which gives creators the option to share subscriber-only content on the social network. Subscriptions haven’t fully rolled out yet, and are still in the testing phase. “Professional mode allows you to build a global audience of followers, while still staying connected to friends and family from your personal Facebook profile,” the company said in the blog post. “As you post public content, you’ll have access to features designed to help you obtain and engage new followers – that were previously only available on Pages.” The expansion comes at a time when Meta is investing in its creator user base, as it sees the potential in a new revenue stream that comes from things like creator subscriptions. As Meta continues to build the metaverse, it’ll need the support of creators, so it’s not surprising that it’s looking to broaden its offerings for creators.

Bitcoin miners struggle as energy prices rise and hash prices fall • ZebethMedia

Bitcoin prices have continued to hold near $20,000 this past week, but some miners are crumbling as spiking energy prices and historically low hash prices cut into profits. Even though bitcoin’s price has been down for a while and has fallen about 56% year to date, the dominoes just began to fall for Bitcoin miners. What’s driving the implosion? “There are a lot of different issues in the motion. Obviously the global recession is looming, on top of inflation and rising prices of electricity,” Christopher Perceptions, founder of PerceptForm and CEO of NoCodeClarity (no-code web3 apps), told ZebethMedia. “Miners are struggling for a multitude of reasons right now,” Nick Hansen, CEO of crypto-mining firm Luxor, said to ZebethMedia. “We’re seeing historically low hash price, which means that miner revenues are at all-time lows.” Hash price is a metric to determine the market value for each unit of hashing power, which is set through changes in Bitcoin mining difficulty (which is currently high) and the price of the cryptocurrency. Image Credits: Hashrate Index The hash price is near a historical low, according to data on Hashrate Index. The current hash price is about $70.72, down 80.5% from $361.82 on the year-ago date. Additionally, energy prices have increased across many markets, which means miners’ expenses are at all-time highs, Hansen said. At a high level, the higher the hash rate the greater the difficulty to mine Bitcoin — meaning that it takes more electricity to do so, Perceptions said. “If the electricity price is high, it’s harder to make a profit.”

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