TikTok Establishes New Licensing Agreement with Universal Music
State of Play: State of Play: Despite ongoing EU investigations, and the forced sell-off in the U.S., TikTok has announced it’s moving forward on new terms with Universal Music Group (UMG) in a multi-dimensional licensing agreement. This comes after the music publisher pulled its music from the app in February 2021 – making videos go silent as music from artists like Ice Spice and Taylor Swift were pulled from the platform.
Why it Matters: TikTok has reported that users are significantly more likely to discover and share new music content within the app, with many also finding new artists through TikTok clips. The new agreement aims to provide more opportunities for artist promotion and creative potential for TikTok creators. This comes at a time when the platform aims to demonstrate its value to global audiences and key stakeholders. Under the new agreement, increases in e-commerce opportunities, marketing campaigns, ad credits, and data insights will help create new revenue streams for musicians.
LinkedIn Report Analyzes How Professionals are Using Generative AI
State of Play: LinkedIn, in collaboration with parent company Microsoft, is offering a fresh perspective on Generative AI landscape and the impact these technologies are having on the modern workforce.
Why it Matters: The report offers insights into how AI is reshaping workplaces and labor markets worldwide. Over the past six months, adoption of generative AI has surged, with 75% of global knowledge workers integrating AI tools into their daily routines. Workers across generations are embracing AI tools, ranging from 73% of boomers to 85% of Gen Z. Executives recognize the need for AI adoption to maintain competitiveness (79%), yet many express concerns about accurately measuring AI's productivity benefits (59%) and the adequacy of their AI plans (60%).
The report highlights AI's permanent role in the professional sphere and stresses the importance of understanding generative AI's impact within your industry. Access the full report here.
New Shoppable Ad Formats Are Coming to Amazon Prime
State of Play: Amazon announces plans to roll out an expanded suite of three new ad formats that will enhance the shopping experience, by allowing users to add products to their Amazon carts using their smart TV remote.
Why it Matters: The three new ad format updates will significantly enhance viewers' ability to make purchases on Amazon while watching a TV show, movie, or live sporting event on Amazon’s Prime Video. This innovative ad format goes beyond QR code technology, providing a more seamless ad experience. These new interactive ad formats also provide valuable data insights for Amazon. By tracking viewers' interactions with the ads, Amazon can gather data on consumer preferences, behaviors, and purchasing patterns, which can inform future advertising strategies and product offerings.
Instagram Updates Algorithm to Prioritize Original Content and Emerging Creators
State of Play: In response to creator complaints, Instagram has announced a major feed algorithm update to give more traction to original content posters – as opposed to those who repost other’s work.
Why it Matters: After creators expressed dissatisfaction with the platform’s feed algorithm, Instagram's update aims to improve its relationship with creators and inform posting strategies. With creators questioning TikTok’s future in the US, changes to the algorithm could also provide an opportunity for Instagram to demonstrate its ability to fill the gap. The proposed update to Instagram's algorithm includes four essential components: removing aggregator accounts from recommendations, adding labels to reposted content, replacing reposts with original content in recommendations, and spotlighting smaller creators for improved distribution.
UK Considers Under-18 Ban on Social Platforms
State of Play: Ofcom, the UK’s regulatory and competition authority for communications, has issued a warning to social media platforms. They caution that these platforms could face a ban for users under 18 if they do not adhere to new online safety regulations. This warning follows the government’s Online Safety Act, which aims to make technology companies take more responsibility for children’s safety online.
Why it Matters: In the UK, social media users must be over 13, but Ofcom says children still regularly encounter content promoting self-harm, violence, and other inappropriate topics on social media. Although this type of content is already banned by social media platforms, Ofcom notes an increasing number of children who have been injured or died after engaging with harmful online content in recent years. If tech firms cannot effectively limit children's exposure to harmful content on their platforms, Ofcom may consider banning children under 18 from using social media altogether.
LinkedIn Embraces the Gamification Trend
State of Play: LinkedIn has launched a new gaming feature within its platform, offering three different games: Pinpoint, Queens, and Crossclimb. These games aim to engage users by providing daily gameplay, metrics, and leaderboards, including ones tailored for schools and companies.
Why it Matters: The addition of gaming content on LinkedIn reflects a broader industry trend. Digital content businesses, facing a decline in ad revenues, are diversifying into gaming to capture and retain users. Gamification offers the opportunity to attract new users and keep existing ones on the platform for longer. While LinkedIn has not monetized these games yet, the platform aims to enhance user engagement and networking.
Reddit Shares Surge After Striking a Deal with OpenAI
State of Play: OpenAI has secured a deal to access real-time content from Reddit's data API, allowing it to incorporate Reddit discussions into ChatGPT and future products, reminiscent of Reddit's earlier $60 million agreement with Google. In exchange, this partnership will enable Reddit to develop new AI-powered features and applications using OpenAI's language models, while also establishing OpenAI as an advertising partner on the platform.
Why it Matters: The reaction of the Reddit community to this news is uncertain, especially considering past protests against Reddit's API changes. No financial details were disclosed in the announcement, but it was noted that OpenAI CEO Sam Altman is a Reddit shareholder. The partnership also signals a significant shift in Reddit's stance on data sharing and AI, despite previous resistance to data scraping for AI training. This move could have wider implications for the AI industry and social platforms, as it represents a growing trend of integrating social media data with advanced AI technologies.
