🎧 Apple vs. Spotify


April 26, 2021

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The Hustle

Congrats to [don’t forget to insert], winner of this year’s Oscars best picture.

The big idea

A proposed $4B+ soccer league imploded in 48 hours. What happened?

Last year, Quibi was eviscerated by the media for its quick flameout.

After raising $2B, the short-form video startup launched and shut down all within 6 months.

Well, last week, another media-related venture saw an even more spectacular blowup:

  • April 18: 12 European football (AKA soccer) clubs announced plans to form a “Super League” backed by a $4.2B loan from JPMorgan Chase.
  • April 20: Within 48 hours, half of the league’s founding members pulled out and the plan was canceled.

Some background

The teams involved with the Super League plan — primarily from the UK, Spain, and Italy — were some of the world’s most valuable brands (e.g., Manchester United, Real Madrid).

There is an existing European football competition, called the Champions League, but the richest clubs wanted to address 2 issues:

  • Qualification: In the current arrangement, a poorly performing team gets demoted to a lower tier and can’t participate in the Champions League. A Super League guarantees a slot for all participating teams, whether or not they are actually playing well.
  • Money (of course): Guaranteed participation means guaranteed TV and sponsorship deals. Many rich clubs are unhappy that the money their brands bring in helps to float poorer clubs.

And the money is no small beans

The Super League was projected to bring in ~$5B a year in broadcasting rights vs. only $3B for the 2018-19 Champions League season, per The Economist.

The proposed Super League arrangement is actually similar to how American sports are structured (i.e., teams don’t get demoted for poor performance).

By guaranteeing a spot in the top league, team values benefit. Case in point: 43 of the 50 most valuable sports teams are based in the US.

The rollout for the Super League was disastrous

Star players and team managers weren’t informed about the plan.

Fans of excluded clubs were upset for obvious reasons, but even fans of the Super League participants saw it as a cynical cash grab.

The billionaire owner of Real Madrid maintains that the Super League will proceed in some form. Meanwhile, UK sports minister Oliver Dowden says he will use every tool at his disposal to block the Super League.

“Owners should remember that they are only custodians of their clubs,” Dowden said. “They forget fans at their own perils.”

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SNIPPETS
  • India’s government is forcing Twitter to take down tweets criticizing the nation’s handling of the pandemic.
  • Carbon offset: Google Maps will now default to the “greenest route” (AKA most fuel efficient) for its navigation. People in a rush may be disappointed, as the former default was the “fastest route.”
  • Loosening its grip: Amazon is rolling out tools to let merchants speak directly to their customers for matters outside of order statuses and returns. Finally, we can connect with the makers of our handheld foot massagers.
  • Apple’s long-awaited privacy update goes live this week. We previously covered how the change will shake up the $400B digital ad industry.
Delivery, incognito.
delivery bike

Delivery is getting easier! (Fox Photos / Getty Images)

Tyltgo: the white label version of DoorDash

Many consumers now expect same-day delivery for their online purchases. But for many brands, this can be a logistical nightmare.

Meet Tyltgo: a white label, same-day delivery company.

Founded by 2 University of Waterloo alumni, this Y Combinator company just raised a $2m seed round to help small businesses own the customer experience from purchase to delivery.

The power of the post-purchase experience

Mom and pop stores don’t have the time, knowledge, or resources to build out critical parts of the post-purchase experience themselves.

For these businesses, Tyltgo aims to offer a turnkey solution:

  • Communication: Order ETA, route updates, delivery fulfillment, and post-delivery feedback are prime opportunities for companies to interact with customers.
  • Delivery: The timeliness and condition of the delivery affect customer satisfaction.
  • Messaging: Customized copy gives customers a sense of a company’s personality and brand.

Tyltgo is coming in hot (hot hot hot oooh 🎶)

It has ambitious goals like taking on the growing $9B global meal prep industry. So far, it is — ahem — delivering.

  • Revenue growth: Last year, revenue increased 2,000%. The startup expects another 1,500% growth in 2021.
  • Hiring: It has attracted top talent like Uber Eats Canada’s former head of marketplace operations and a former Goldman Sachs director of engineering.
  • New merchants and industries: While it started with servicing florists and pharmacies, Tyltgo is looking to add 100 more merchants this year.

Tyltgo’s business is a reminder that clicking “confirm order” is not the end of the customer experience — it’s just the beginning.

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There are 6 types of Instagram ads. Which one is right for your business?

That’s right, six. Should you use the Carousel layout? Or maybe something more dynamic like Video. How about Explore? A little help over here?

Fifty percent of users make a purchase after seeing an ad on Instagram (per Hootsuite), so the stakes are pretty high to find the best format for capturing your audience’s attention.

Create scroll-stopping ads and generate sales with expert advice from HubSpot

This free 12-minute video takes a deep dive into the 6 different Instagram ad types and the benefits of each. You’ll learn what works best for your message and view examples of successful ads to land sales with new customers. Pretty slick.

If you’re looking for more tips and tricks, check out the other masterfully made videos on HubSpot’s YouTube channel.

Watch the video here →
Tech Beef
podcast apps

There can only be one… or two… maybe more (SOPA Images / Getty Images)

Podcast wars: Apple vs. Spotify

The word “podcast” is a portmanteau of “iPod” and “broadcast.”

As you can imagine from the first of those words, the inventor of the format is a tiny little company called Apple.

But since introducing podcasts in 2005, the iPhone maker has won purely by being the default and introduced very little innovation…

… until last week

As part of a larger event called “Spring Loaded” — where it showcases new hardware (e.g., iPads, iMacs, AirTag) — Apple announced that it’s offering paid podcast subscriptions, per The Wall Street Journal:

  • Creators pay Apple $19.99 a year to activate the option
  • Apple takes 30% of subscription revenue in year 1 and 15% thereafter

While the 30% cut may irk some — and is already a source of antitrust concern for Apple — the potential normalization of paid podcasts could be a gamechanger, especially from a company with 1B+ iPhone users.

Now, Spotify will roll out its own subscription option

The streaming service will not charge creators for the right to do so… nor will it take an ongoing cut, per the WSJ.

This is the latest Spotify move to own the podcasting space which, to date, is making serious headway.

Analytics firm eMarketer says the Swedish company is on pace to overtake Apple for podcast listenership in the US (Apple’s market share has declined from 34% in 2018 to 24% now).

With podcast ad revenue projected to break $1B in the US this year for the first time ever, and Spotify taking Apple to court over its App Store policies, the battle is just starting.

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Podcast

He owns companies worth ~$1 billion…here’s how Andrew Wilkinson makes business decisions

In today’s podcast we talk to Andrew Wilkinson. His job? Buying companies. Why should you care? Because he spots opportunities before most have any idea they even exist.

Andrew owns a small empire of 30(ish) companies that collectively does over $100m in revenue.

In this pod we discuss:

  1. The companies he’s trying to buy right now
  2. A media company he recently bought and how he’s turning it around (GirlBoss)
  3. How he decides which companies to buy (and where he finds his data)
  4. Why he just launched a bakery (it’s a surprisingly good idea)
  5. What investor he models his decisions after (Henry Singleton)
  6. One book that totally changed how he started and ran his companies.

PS…Apple user? Subscribe to the pod. If you do then you’ll get an alert when there’s a new episode. Thus, making you a smarter, happier, richer person.

🎧 Listen below:

Memes of the day

The quick demise of the European Super League predictably led to some hilarious memes and jokes.

The Independent rounded up some of the best:

Source: Twitter / @barneyronay

Source: Twitter / @JaneyGodley

Source: Twitter / @scottygb

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