💰 The $1.4T Big Tech windfall

PLUS: TikTok vs. Spotify. December 29, 2021 [The Hustle]( “There’s an app for that” is much more than a joke. According to Sensor Tower, nearly 1k app creators made their first $1m in 2021. Today’s rundown: - Big Tech’s big year: Amazon, Apple, Google, Meta and Microsoft are on pace for combined sales of $1.4T this year. - Streaming wars: TikTok has a growing music business… which could be bad for Spotify. - League of Lawsuits: Riot Games agrees to pay $80m to women employees to settle a class-action lawsuit. - Around the web: How to become Spider-Man, figure out if a hot dog is a sandwich, and more internet things. Let’s do it. The Big Idea [big tech breakup gif]( Even in the face of antitrust scrutiny, Big Tech is on pace for sales of $1.4T in 2021 The moniker “Big Tech” refers to Amazon, Apple, Google, Microsoft, and the artist formerly known as Facebook, Meta. Collectively, these companies are facing anti-monopoly cases brought on by regulators around the world (i.e., Australia, EU, India, UK, US). Despite the antitrust pressure… … Big Tech is having a massive year, with the Fab 5 on pace for $1.4T (yes, trillion) in 2021 revenue, per [MarketWatch](. More astonishingly, their cumulative profit since the start of the pandemic may reach $500B by year-end. The pandemic forced the world to go digital And Big Tech provided crucial services through cloud infrastructure, communication, ecommerce, and remote work tools. The 5 companies now make up 7 of the world’s [most valuable firms](: - Apple -- $2.94T market cap - Microsoft -- $2.56T - Alphabet (Google) -- $1.94T - Saudi Aramco -- $1.89T - Amazon -- $1.73T - Tesla -- $1.09T - Meta -- $963B Add it all up and the Big Tech firms make up [20%+]( of the entire S&P 500. Who was the biggest Big Tech winner? From an investment perspective, it was Alphabet (GOOGL), which has returned ~70% this year. Here’s what drove the performance, per [CNBC](: - Search dominated: Alphabet’s core ad search business grew 43% YoY last quarter, which is wild when you consider that it’s already a massive $200B+/yr. business. - Android to the rescue: Apple’s iOS privacy changes hurt many digital ad firms (e.g., Meta, Snap, Pinterest), but Alphabet’s search business has been largely immune. Owning the Android mobile OS def helps. - YouTube on the rise: Alphabet’s video platform is now on a $28B+ annual revenue rate (putting it on par with [Netflix](). - Cloud growth: While smaller than Microsoft Azure or Amazon Web Services, Alphabet’s cloud infrastructure business is benefiting from the shift to remote work. Looking forward, we have only one certain Big Tech prediction for 2022: Meta won’t change its name. [Share on Facebook]( [Share on Twitter]( [Send as email to a friend](mailto:?subject=The%20Hustle%20wrote%20something%20I%20think%20you%27ll%20like...%0A&body=Even+in+the+face+of+antitrust+scrutiny%2C+Big+Tech+is+on+pace+for+sales+of+%241.4T+in+2021%0Ahttps%3A%2F%2Fthehustle.co%2F12292021-big-tech%3Futm_campaign%3DBig%2BTech%26utm_content%3D12292021-big-tech%26utm_medium%3Demail%26utm_source%3Ddaily%0A%0AYou%20can%20subscribe%20with%20my%20link%20here%20to%20get%20the%20latest%20in%20tech%20and%20business%20daily:%0A [View on our website]( SNIPPETS US home prices jumped 18.4% YoY in [October](, which is actually a slightly slower pace than September’s rise of 19.1%. Chinese regulators want the country’s tech firms to better serve consumers. On that front, food delivery firm Meituan just [teamed up]( with short video app Kuaishou to integrate their services. RIP: John Madden passed away yesterday at the age of [85](. The legendary NFL coach and broadcaster also lent his last name to one of the most popular video game franchises ever. --------------------------------------------------------------- Hey — enjoy getting quick updates on what you care about? Take [20 seconds]( to personalize your Snippets. Pick your preferences👇 and we’ll send you more of what you love. Boom. [Personalize my Email →]( 2022 Rivalry [TikTok Spotify meme]( Watch out (Source: Mematic) TikTok’s next victim could be Spotify. Here’s why In November, Spotify CEO Daniel Ek [told]( Bloomberg that “only the paranoid survive.” Spotify is extremely popular. It has [381m]( users, some of whom are likely reading this right now. So why the paranoia? Well, you see, Ek is smart. He’s seen Gen Z bow down to TikTok and stray away from the almighty Facebook and Instagram. But what’s TikTok got on Spotify, a music platform? The answer: Its own music platform. It’s called Resso, and the strategy TikTok’s parent company ByteDance is using is a clever one. It focuses on 2 things: - Emerging markets: Resso was first launched in Brazil, Indonesia, and India, places Spotify must target if it wants to grow (which it does). - Gen Z: Resso’s main attraction is social features that let you interact with friends around your favorite tracks. But what’s the real difference? Look no further than the [top 5]( artists of 2021 on Spotify and TikTok to see the Gen Z gap. - Spotify: Bad Bunny, Taylor Swift, BTS, Drake, Justin Bieber - TikTok: Megan Thee Stallion, Doja Cat, Popp Hunna, Olivia Rodrigo, Cardi B If you don’t know the TikTok artists, it’s because you’re old. Today, 75% of US TikTok users [find]( new artists on the app, and 63% discover new music on TikTok before any other platform. Reminder: TikTok has [over]( 1B users worldwide. Instead of finding a great artist on TikTok, then heading over to Spotify to listen, TikTok wants users to head over to its own Spotify, Resso. Most of all, TikTok has the hearts of Gen Z, which, going into 2022, is arguably more powerful than a clever business strategy. [Share on Facebook]( [Share on Twitter]( [Send as email to a friend](mailto:?subject=The%20Hustle%20wrote%20something%20I%20think%20you%27ll%20like...%0A&body=TikTok%E2%80%99s+next+victim+could+be+Spotify.+Here%E2%80%99s+why%0Ahttps%3A%2F%2Fthehustle.co%2F12292021-TikTok-Spotify%3Futm_campaign%3DBig%2BTech%26utm_content%3D12292021-TikTok-Spotify%26utm_medium%3Demail%26utm_source%3Ddaily%0A%0AYou%20can%20subscribe%20with%20my%20link%20here%20to%20get%20the%20latest%20in%20tech%20and%20business%20daily:%0A [View on our website]( League of Lawsuits [Riot Games logo]( Riot Games is the creator of League of Legends, a multiplayer online arena game that attracts 180m monthly players. (Source: Chris Delmas/AFP via Getty Images) Riot Games agrees to $100m settlement in gender-discrimination lawsuit “League of Legends” maker Riot Games has agreed to settle a gender-discrimination lawsuit for $100m, [per]( The Guardian. And here’s what’s really wild… Any woman who worked at the LA-based video game company since November 2014 -- which includes 2k+ employees and contractors -- is eligible for a piece, per a [statement]( from the California Department of Fair Employment and Housing (DFEH). The backstory In August 2018, gaming site Kotaku published an [extensive report]( on Riot, with sexism allegations including: - Lewd emails about female employees - Unwanted explicit images and comments - Passing women over for promotions or jobs in favor of less experienced men - Rejecting ideas presented by women, then embracing the same ideas when presented by men In October 2018, the DFEH opened an investigation into the company. A month later, ex-employees Melanie McCracken and Jes Negrón sued Riot Games, alleging gender-based discrimination, harassment, retaliation, and unequal pay. Riot tried to settle for $10m… … but the DFEH and California Division of Labor Standards Enforcement (DLSE) [intervened](, stating victims could be due $400m+ in back pay. Now, assuming a judge agrees to the new settlement, Riot will pay $80m to the women and ~$20m toward legal fees. Plus: - One woman or member of an underrepresented community will sit on future hiring panels, [per]( The Washington Post - A 3rd party, approved by Riot and DFEH, will oversee HR complaints for 3 years - Another 3rd party will analyze pay, assignments, and promotions for gender equity for 3 years This all makes us pretty curious to see what will happen with Activision Blizzard, another California video game company facing a [similar lawsuit](. [Share on Facebook]( [Share on Twitter]( [Send as email to a friend](mailto:?subject=The%20Hustle%20wrote%20something%20I%20think%20you%27ll%20like...%0A&body=Riot+Games+agrees+to+%24100m+settlement+in+gender-discrimination+lawsuit%0Ahttps%3A%2F%2Fthehustle.co%2F12292021-Riot-Games-gender-discrimination%3Futm_campaign%3DBig%2BTech%26utm_content%3D12292021-Riot-Games-gender-discrimination%26utm_medium%3Demail%26utm_source%3Ddaily%0A%0AYou%20can%20subscribe%20with%20my%20link%20here%20to%20get%20the%20latest%20in%20tech%20and%20business%20daily:%0A [View on our website]( Podcast Fitness hotels. Car parts. Dentist sensations. After dinner with Olympians, Sam (The Hustle founder) has decided… … he’s starting a resort where you can work out with professional athletes. Please [tweet him]( with dangerous innovations. The business ideas are aflow. The spice is original. Listen to [this episode]( of My First Million: - The podcast clips contest (0:00) - Straw Steel-man debating (11:24) - The fancy fitness hotel (31:53) - Why the creator economy is overhyped (49:14) - Dane Cook’s early growth hack (1:13:35) [Prolific insights →]( AROUND THE WEB 📺 On this day: In 1949, Bridgeport, Connecticut’s KC2XAK [became]( the 1st UHF TV station to operate daily. 🏺 Art: Explore ancient art and artifacts across history with the British Museum’s [Museum of the World](. Click on the colored circles to see a piece, then click to find out more if it interests you. 🕸 Wow: This guy used suction pads to make “[Spider-Man wall climbers](” that let him walk up walls. 🧑‍💼 How to: Check out [these tips]( on how to prepare for and get the most out of one-on-ones with a supervisor. 🌭 Haha: Is a hot dog a sandwich? Is a Pop-Tart a ravioli? The [Cube Rule]( seeks to end this debate once and for all. 📚 Useful: [Alfread]( is an iOS app that helps you organize and read all the articles you’ve saved. How did you like today’s email? Refer friends. Help us grow. Get cool stuff 🤠Share The Hustle with your custom referral link: [ Your referral count: 0 Today's email was brought to you by [Trung Phan](, [Jacob Cohen](, [Juliet Bennett Rylah](, [Rob Litterst](. Editing by: Jennifer “Rekt by Big Tech” Wang. [PODCAST]( [JOBS]( [CONTACT US](mailto:news@thehustle.co) [Facebook]( [Youtube]( [Instagram]( [Trends]( 25 FIRST ST. 2ND FLOOR, CAMBRIDGE, MA 02141, UNITED STATES  +1 888 482 7768 Never want to hear from us again? Break our hearts and [unsubscribe](list=thehustle). [The Hustle](