🔉 What’s next for Spotify?

PLUS: Romance scams are booming. February 1, 2022 [The Hustle] Don’t forget — tomorrow’s the official launch of our new podcast! For years, Morgan Freeman failed to respond to our requests asking him to be lead host, but we decided to move forward anyway, and we hope you can still enjoy it. In today’s email: - Spotify’s problem: Why owning podcasts is a tricky business. - Chart: How Meta’s job board tells its story. - Romance scams: Lonely Americans are losing millions. - Around the web: Endless art, a cat in a puddle, and more fun internet finds. Let’s do it. The big idea [Spotify gif]( The business rationale that led to Spotify’s moderation scandal You’ve probably heard the news. Last week, rock legend Neil Young gave Spotify an ultimatum: He would take his music off the platform if it continued to host the Joe Rogan podcast. Ultimately, Young and other notable artists — Joni Mitchel and Nils Lofgren (Bruce Springsteen’s guitarist) — [pulled]( their catalogs from Spotify and its 380m+ users. Why? Rogan’s long-form podcast — which Spotify acquired for [$100m]( — has been accused of spreading covid misinformation. This isn’t the first Rogan x Spotify controversy: Company employees previously tried to have the comedian removed from the platform over [comments]( about transgender people. So far, the streaming service has backed its big-dollar talent and — in light of the latest scandal — will now [add]( “content advisories” to podcasts that potentially have covid misinformation. Spotify has spent huge on podcasts In addition to Rogan, the company is buying up the entire industry: - Tools [like]( podcast publisher Anchor ($150m) and ad platform Megaphone ($235m) - Content like Gimlet Media ([$230m](), The Ringer ([~$200m](), Call Her Daddy ([$60m](), Prince Harry and Meghan Markle ([$25m]() Spotify is going all in on podcasts because it’s a different business model than its music offering, which pays out huge sums to artists and record labels. Per [Motley Fool](, Spotify’s gross margin has plateaued at ~25% because artist royalties are “variable costs [that] scale every time” more people use the product (AKA listen to music). By creating a podcast platform… … and building a dynamic audio ad marketplace, Spotify’s gross margins can get up 40%. Netflix famously [executed]( a similar strategy by making its own content instead of licensing from studios. But — as we’ve seen over the past week — owning content can create a moderation headache. In response, Rogan apologized to Spotify for the fiasco and [said]( he’s a fan of Young and Mitchell. He also offered a potential change: “If there’s anything that I’ve done that I could do better, it’s having more experts with differing opinions right after I have the controversial ones.” We have a feeling this story isn’t over just yet. [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=The+business+rationale+that+led+to+Spotify%E2%80%99s+moderation+scandal%0Ahttps%3A%2F%2Fthehustle.co%2F02012022-Spotify-scandal%3Futm_campaign%3DSpotify%2Bscandal%26utm_content%3D02012022-Spotify-scandal%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 Olympics are back: Coverage of the Winter Olympics [kicks off]( tomorrow on NBC, or Peacock for the cord-cutting crowd. Retail’s new normal: Parachute, a D2C bedding brand, [announced]( plans to open 30 stores by the end of 2022. Ethical questions: A new report [found]( Crisis Text Line, a nonprofit that offers a free, confidential mental health support line, shares its data with its for-profit spinoff, Loris.ai. For its part, Crisis Text Line claims any data shared with Loris.ai has been anonymized. The New York Times will [acquire]( the popular word puzzle game Wordle for “low seven figures” (it will remain free for the time being). We previously wrote about the viral game [here](. UPDATE: Google, which previously announced all free legacy Gmail accounts would need to upgrade to a paid version, [backed down]( after affected users voiced their displeasure. --------------------------------------------------------------- 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 →]( That’s so Meta [Meta job board chart]( Meta’s job board tells its story It isn’t easy bringing a [68k](-person social media company into the metaverse. The 1st step involves literally renaming yourself Metaverse (Meta for short). The 2nd entails hiring talent. On Meta’s job board, there are now 6x+ the jobs [listed]( for Oculus than for Messenger, Instagram, and WhatsApp combined. Looking deeper, AR/VR roles comprise 21% of all jobs listed. Just 1.6% are in advertising tech. Bottom line: Meta is eyeing a future with less Facebook, Instagram, and WhatsApp, and much, much more… Meta. [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=Meta%E2%80%99s+job+board+tells+its+story%0Ahttps%3A%2F%2Fthehustle.co%2F02012022-Meta-job-board%3Futm_campaign%3DSpotify%2Bscandal%26utm_content%3D02012022-Meta-job-board%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]( Bad Romance [dating app]( (Photo Illustration by John Phillips/Getty Images) Lonely Americans were swindled out of millions in romance scams Talk about a bad breakup: In the 1st 3 quarters of 2021, Americans lost $343m+ to romance scams, per an [analysis]( by Atlas VPN. That’s more than all of 2020, in which Americans [reported]( $304m in romance scams to the FTC, up 50% from 2019. What’s a romance scam? [According to]( the FBI, it’s when a scammer uses a bogus online persona to build a relationship with someone they later con out of money. Romance scammers typically lurk on dating sites or social media to find victims, and may be part of a criminal organization. Common targets are lonely or vulnerable people over 50, often women. Scammers establish trust and affection, then ask for money — perhaps for medical or legal fees, debt, or travel expenses. And they usually want it via some less traceable means, like gift or reload cards, transfers, or [crypto](. Some common red flags: - They repeatedly promise to meet IRL, but something always comes up - The relationship escalates very quickly, even talking marriage without meeting face-to-face - They attempt to isolate victims from friends or family - They ask for financial info or intimate photos that could be used for extortion Why the boom in romance scams? One theory: the pandemic. People have a [good excuse]( for not wanting to meet in person and have been more isolated than ever. A recent study [found]( 36% of Americans are feeling “serious loneliness.” Btw: Some scammers are brazen enough to do it in person, like John Meehan — subject of The Los Angeles Times’ “[Dirty John](” series — or Derek Alldred, who, [per]( The Atlantic, scammed 12+ women out of ~$1m. [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=Lonely+Americans+were+swindled+out+of+millions+in+romance+scams%0Ahttps%3A%2F%2Fthehustle.co%2F02012022-romance-scams%3Futm_campaign%3DSpotify%2Bscandal%26utm_content%3D02012022-romance-scams%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]( TRENDS 4 Trendsters build a business in 60 days We loaded 4 community members with $2.5k cash and $1k in Fiverr credits to launch a new project in public (for a $10k grand prize). The Trends “Give a Buck” builders: - Jessie Hawkins ([Sweet Loot](): an ecommerce brand for foragers with scenic shirts and fanny packs on Etsy and Shopify. Foraging bags and kits incoming. - Corey Wright ([NiFTy Displays](): bringing crypto fans the back-lit acrylic frames their precious digital icons deserve. What’s another $80, right? Watch for the drop. - Camilo Archuleta ([Beeso Box](): a biz in a box for the kids, since it’s never too early to start thinking and saving like an entrepreneur. Moms, dads, and young’uns are pleased. - Courtney Walker ([BLCKCrypto](): a future blockchain content hub for the Black community is cooking up its flagship course: a Gumroad course on DeFi. Very hype. You like that? You like that. Join Trends for market gaps and the community that slaps. [Your trial costs $1 →]( AROUND THE WEB 📘 On this day: In 1884, The Oxford Dictionary was [published](. Today, it would take a single person an estimated 120 years to type all 59m listed words. 🔉More Spotify: For a full breakdown of the streaming platform’s business and how it “controls attention”, check out the latest [Trapital]( essay. 🖼️ Art: Artist Pablo Andrés Pozo has created a seemingly endless piece of art called “Past Lives.” Watch him zoom out — and out and out — [here](. 🍎 Useful: [CORE]( is a collection of 207m+ open-access articles and research papers from around the world. 👻 That’s interesting: This [website]( catalogs dead malls — malls with high retail vacancy rates — across America. 🗣 How to: Remember small talk around the water cooler? If you miss it or feel awkward about it, here’s [a guide]( to relearning how to do it. 🐈‍⬛ Aww: And now, a cat [plays]( in a puddle. Meme of the day [podcast meme] No wonder Spotify’s all-in on podcasts. (Source: Twitter) SHARE THE HUSTLE Hey. Stop keeping us a secret. Refer just 3 people and we’ll start to send some goodies as a thank you. [My First Million ebook]( Spread the news. Help us grow 🌱 [Share The Hustle 🤠→]( Or copy this custom referral link: [ Your referral count: 0 How did you like today’s email? Today's email was brought to you by [Trung Phan](, [Jacob Cohen](, [Juliet Bennett Rylah](, [Rob Litterst](. Editing by: Jennifer “Speaking of podcasts, we’re launching one” 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](