Tech Brew Ride Home - Mon. 04/24 – And More Twitter Stuff

Episode Date: April 24, 2023

Would you believe me if I told you there was more Twitter chaos over the weekend. More details on the Apple headset. Is ARM about to abandon its Switzerland strategy? Interesting data about how Netflix dominates TV watching. And sad data about the down rounds we can expect for the foreseeable future. Sponsors: Miro.com/podcast Links: Elon Caves, Gives Blue Checks Back to Twitter’s Biggest Celebs (Daily Beast) Apple Will Take Scattershot Approach to Pitching AR/VR Headset (Bloomberg) Chip designer Arm makes its own advanced prototype semiconductor (Financial Times) These Are The Most Popular TV Shows on the Internet (Bloomberg) Silicon Valley Startups Brace for a Summer of Pain (Bloomberg) Learn more about your ad choices. Visit megaphone.fm/adchoices

On April 4th, 2023, around 2 in the morning, a man was found stabbed multiple times on a sidewalk in downtown San Francisco. Hey, who did this to you? What happened next turned the story into a political firestorm. Reports have identified the victim as Bob Lee, the founder of Cash App. From Bloomberg Podcasts, this is Foundering, the Killing of Bob Lee, beginning April 16. Welcome to the TechMeme right home for Monday, April 24th, 2023. I'm Brian McCullough today. Would you believe me if I told you there was more Twitter chaos over the weekend? There was more details on the Apple headset. Is Arm about to abandon its Switzerland strategy? Interesting data about how Netflix dominates TV watching and sad data about the down rounds we can expect for the foreseeable future. Here's what you miss today in the world of tech. So here's the Twitter stuff from this weekend. Twitter restored the gold badges of some news organizations, including the BBC, The New York Times,

and Bellingcat. The BBC and Bellingcat, among others, say they did not pay for this to happen. They're not alone. All weekend, folks were saying they were getting blue checkmarks back that they didn't pay for, and some of them insist they don't want. I'm talking about some prominent critics of Twitter under the Musk regime like Keras Swisher. The famous at-drill account basically kept attempting to change his profile as an attempt to shake off the blue check and within hours. It just kept coming back, almost as if there's a manual team at Twitter, trying to stick blue checks to people who don't want them in an effort to, I don't know, mess with them. One theory I heard over the weekend was this. What if Twitter really is going down the tubes? And what if Elon knows that already? What if he

already knows it's unsavable? He does have the data. He didn't want to go through with the acquisition Anyway, so if he can see that it's a lost cause, why not use it to mess with your critics on the way down? What good is owning a social network if you can't have fun with it, even as it dies? Anyway, from the Daily Beast, a bit of a summary of this weekend's shenanigans, quote, friends told me my blue verified check was restored, don't know why, I've paid nothing, I gave no number, tweeted Seinfeld star Jason Alexander. It appeared that Musk had only restored the blue checks to users with the highest fond, accounts, seemingly caving on an issue that has deviled the platform since he made the decision

to introduce his $8 a month Twitter blue verification system. Musk decision on Thursday to finally make good on his promise to only verify those who paid the fee through the platform into chaos, with the mass de-verification opening the door for a host of celebrity imposter accounts. Yet in classic Musk fashion, the chief twit initially attempted to cast his capitulation as an epic troll. quote, I will pay for your blue check, my gift to you, Musk tweeted in response to a thread in which former labor secretary Robert Reich rejected his blue check and announced, quote, the oligarchs who have too much power over the internet, end quote. Musk later tweeted, checkmate. However, the move appeared to be much more far-reaching than a mere prank on those who had criticized the verification system. From Pope Francis to

former President Donald Trump, numerous notables who had not waited into the blue check debacle also saw their verifications restored after briefly losing them. As the checks flooded back in, many celebs who were vocal about their decision not to pay the $8, made sure to let their followers know that the restoration was not their doing. Good Lord, I've been LeBron, shatnered, kinged without my consent, no means no, boys, tweeted tech journalist Kara Swisher. Chrissy Teigen even offered her followers advice on how to rid themselves of the pesky badge, instructing Pod Save America host John Favreau, quote, change your name and it triggers a checkmark removal, but then don't talk about it again, or you will get another. I'm serious, L.O.L. and quote. Again, I believe that's what

at drill was trying to do, but I guess there are people watching with marching orders to make sure people Elon wants to have blue checks have them no matter what. I think we can safely assume that every week until WWDC, we can expect more leaks about the Apple headset. This weekend, Mark German's newsletter was no exception to that, sharing new speculation about the headset's external battery and charging cable, and a look at Apple's strategy for the app store for this new device, quoting Mark. Apple plans to pack the headset with a variety of features, games, fitness services, even an app for reading books in virtual reality, and hope that buyers find something they like. It's not such a wild approach. After all, Apple did the same everything and the kitchen

sync strategy when it unveiled its watch. In 2014, Chief Executive Officer Tim Cook pitched the original Apple Watch as a highly accurate timepiece, a fitness tracker, a way to send personal messages to other wares, and much more. In his presentation, he talked about using it as an Apple TV remote, an iPhone camera viewfinder, and a walkie-talkie. The fact is, Apple had little idea which options would resonate. In the end, it focused on health tracking, notifications, and complication-rich watch faces, but only after customers zeroed in on those features as their favorites. Nine years later, we're about to see something similar play out with the Apple headset, which, based on trademark filings, is likely to be dubbed the Reality Pro or Reality One.

The device is packed with new technologies and a wide range of capabilities. They include the ability to run most of Apple's existing iPad apps in mixed reality, which blends AR and VR. That includes books, camera, contacts, FaceTime, files, free form, home, mail, maps, messages, music, notes, photos, reminders, safari, stocks, TV, and weather. A new wellness app with a focus on meditation featuring immersive graphics, calming sounds, and voiceovers, being able to run the hundreds of thousands of existing third-party iPad apps from the App Store with either no extra work or minimal modifications, a new portal for watching sports and virtual reality as part of Apple's push into live streaming games and news, a large gaming focus,

including top-tier titles from existing third-party developers for Apple's other devices, a feature to use the headset as an external monitor for a connected Mac, advanced video conferencing and virtual meeting rooms with realistic avatars, ideally making users feel like they're interacting in the same place. New collaboration tools via the freeform app that lets users work on virtual whiteboards and go over material together. A new VR-focused fitness plus experience for working out while wearing the headset, though this feature likely won't arrive until later. A way to watch video while immersed in a virtual environment such as a desert scene or in the sky, users will also be able to operate the headset in several different ways, including by hand and eye

control and Siri. It also will work with a connected keyboard and controls from another Apple device. Those features will be accompanied by a wave of apps from third-party developers. Apple is planning to unveil a software development kit and Mac-based headset simulator at the Worldwide Developers Conference, where the company will push attendees to write apps and services for XROS, its new mixed reality operating system. Over time, I would expect Apple to refocus the headset on a more manageable set of features after it learns which ones consumers prefer. One of the device's more surprising design elements is the use of an external battery that rests in a user's pocket and connects via cable. Apple made that choice to reduce weight and improve comfort. The headset

will have two ports, a USBC connector to handle data, and a new proprietary charger. The charging cable that goes into the headset has a round tip that inserts magnetically. In order to prevent the connector from falling out during use, you rotate it clockwise to lock it in. The cable connects itself to the battery pack and those two pieces aren't separable. The pack, which should power the headset for about two hours, looks like Apple's iPhone MagSafe battery pack. It's about the size of an iPhone, but thicker. The pack is designed to be charged via USBC and will be powered up using the same adapter included with the MacBook Pro. Given the short battery life, likely due to the use of an M2 chip and dual 4K displays, I'd imagine Apple will offer the ability to buy extra packs,

and quote. Sources are telling the financial times that Arm plans to work with manufacturing partners to build its own test chip to showcase the capabilities of its designs, which would mark its most advanced chipmaking effort yet. Quote, Arm is developing its own chip to showcase the capabilities of its designs as the soft bank-owned group seeks to attract new customers and fuel growth following a Blockbuster IPO later this year. The company will team up with manufacturing partners to develop the new chip, according to people briefed on the move, who describe it as the most advanced chipmaking effort the Cambridge headquartered group has ever embarked upon. The effort comes just as SoftBank seeks to drive up arms profits and attract investors to a planned listing on New York's NASDAQ exchange. The company traditionally sells its blueprint designs to chip manufacturers rather than getting involved directly in the development and production of semiconductors itself. The hope is that the prototype will allow it to demonstrate the power and capability. of its designs to the wider market. Arm has previously built some test chips with partners

including Samsung and Taiwan Semiconductor Manufacturing Company, largely aimed at enabling software developers to gain familiarity with new products. However, multiple industry executives told the FT that its newest chip, on which it started work in the past six months, is more advanced than ever before. Arm has also formed a bigger team that will execute the effort and is targeting the product at chip manufacturers more than software developers, they said. The company has built a new Solutions Engineering team that will lead the development of these prototype chips for mobile devices, laptops, and other electronics, according to people briefed on the move. Rumblings about arms chip-making moves have stoked fears in the semiconductor industry that if it

makes a good enough chip, it could seek to sell it in the future, thereby becoming a competitor to some of its biggest customers such as MediaTech or Qualcomm. Any move to build chips for wider commercial sale would undermine arms position as the Switzerland of the semiconductor industry, selling designs to almost all mobile device chipmakers while not directly competing with them. Its neutral model has led to its products being found in more than 95% of smartphones with customers including Qualcomm, MediaTech, and Apple, end quote. You know I can't resist data points like this. According to Nielsen, Netflix accounts for between 7 and 8% of TV viewing in the U.S. every month, which seems on the small side, though, I would argue it really isn't.

But also, they claim that Netflix is responsible for between 70 and 80% of the top TV shows in the U.S. every single week. So that would suggest traditional TV is largely now the domain of channel flippers, just looking for whatever's on. But Netflix has become the home for destination viewing. Quote, Netflix accounts for between 7 and 8% of TV viewing every month, according to Nielsen. No other service besides YouTube tops 4%. People spend more time watching Netflix every month than Hulu, Disney Plus, and HBO Max combined. Netflix's share of the most popular acquired titles, typically reruns of TV shows, licensed from elsewhere, has slipped, however. Its share was 100% for most of 2021, and now sits between 50 and 75% most weeks.

Netflix has also lost some share in original series, but not as much. The biggest beneficiaries have been HBO Max, which now has reruns of Friends, The Big Bang Theory, Park as well as Disney Plus, which has The Simpsons and Bluey. It should be noted that of these shows Only Friends was a regular for Netflix. Netflix's biggest hits spent more time in the top 10 than any show on Amazon, Hulu, Disney Plus, or HBO Max. Now, as mentioned above, the Nielsen Data does favor binge viewing. Your show has to be a huge hit to reach the charts with weekly drops. The only weekly releases that stayed in the top 10 for their full run are House of the Dragon and The Boys. But Netflix's biggest advantage is its raw size, with more than 60 million

subscribers and another 30 million or so password moochers. The company reaches at least 100 million viewers a month in North America and likely far beyond that. The company has proven it can turn a show with a small audience elsewhere like Cobra Kai or Breaking Bad into a hit on its service, end quote. Finally today, more data, though this is not good data. According to Bloomberg, analyst investors and founders expect a hard year for tech startups to continue, including more downrounds. Pitchbook says that for more than 400 unicorns it tracks, none of them have raised additional funds since 2021. Quote, as the market downturn drags on and investors' cash remains hard to come by, more startups will start to run out of money, experts say. Some venture-backed

companies will be forced to raise new funding, even if it means agreeing to a lower valuation than they once secured, a deal called a downround dreaded by founders and investors alike. We haven't had a compression in values like this in more than 20 years. It's an absolute bloodbath, said Cameron Lester, global co-head of technology, media, and telecom investment banking at Jeffreys, adding that companies that are able to raise money even at a lower valuation are the lucky ones. What matters is you're a survivor, Lester said. Toward the end of 2022, down rounds hit near five-year highs, according to research firm Prequin, and early data for the first quarter shows roughly 7.5% of all venture funding rounds in the U.S.

were down rounds, according to Pitchbook. A number it expects will climb. High-profile companies like financial giant stripe, Swedish payment startup Klarna, and security firm SNCC have already taken valuation cuts, and others like blockchain.com are said to be in talks to do the same. Founders assiduously avoid down rounds because they signal that a company's to the moon trajectory has been derailed, battering morale and wiping out millions and sometimes billions of paper wealth for startup founders and employees. They also represent a loss for venture capitalists and their investors called limited partners and can result in legal headaches. While many companies have cut costs and taken on debt to avoid raising money on unfavorable terms, those delay tactics have limits. More than 400 companies, one-third of all unicorn startups,

those valued at $1 billion or more, haven't raised new funding since 2021, according to Pitchbook. That's a long time for a company that isn't yet turned. a profit, coasting on the cash they brought in from previous funding rounds. Most venture-backed companies usually raise every year or two, and about 94% of tech unicorns are unprofitable, according to pitchbook. Some of these companies remind me of Scottish nobility that haven't raised money in seven generations, said Matthias Schilling, co-founder of Venture Firm headline. They sit and drink champagne while it rains through the roof. Schilling's advice, get real, take the down round, end quote. CB Insights had some similar data recently, but for a specific sector. According to them,

global fintech only saw one new unicorn so far this year, Cairo-based M&T Halan. The first time that there was only one new unicorn in a quarter since the end of 2016. Because the Blank Check podcast got around to it for their Danny Boyle miniseries that they're doing, I finally watched T2, the train spotting sequel over the weekend. The original, Train Spotting, was one of the foundational movies of my life in all sorts of ways, but I, like everyone else, missed the sequel. And I'm here to tell you it's actually good. It's different from the original.

But how it's different is what makes it good, because it's kind of through the lens of those characters that the sequel is maybe the most interesting statement I've seen on what it's like to enter middle age. So recommended, if you're middle age like me, talk to you tomorrow.