Spotify Hits Record User and Profitability Milestones, Driven by “Wrapped” and New Co-CEOs, Bipartisan CLEAR Act Requires AI Companies to Disclose Copyrighted Training Data, and Paramount Sweetens Warner Bros. Discovery Bid to Counter Netflix Offer.
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Show Notes
ChatGPT tests ads for free users
ChatGPT is beginning a test of advertisements in the U.S. for logged-in adult users on the Free and Go subscription tiers. Higher tiers (Plus, Pro, Business, Enterprise, and Education) will remain ad-free. The ads will not influence ChatGPT’s answers, and user conversations will stay private from advertisers. The goal is to see how ads can help support wider access to more powerful features while maintaining user trust, with this initial phase focused on learning and refining the experience.
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Spotify hits a record quarter
Spotify had a record quarter, reaching 751 million monthly active users (+38M new) and 290 million paying subscribers (+10%), fueled by the “Wrapped” campaign. Total revenue rose 7% to €4.53 billion, primarily from an 8% increase in subscription revenue. Profitability improved with a record 33.1% gross margin. New co-CEOs Gustav Söderström and Alex Norström take charge of a diversified company (music, podcasts, audiobooks, AI, social) focused on profitability through price hikes and better free-tier options.
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Bipartisan AI copyright transparency bill introduced
Senators Adam Schiff (D-CA) and John Curtis (R-UT) introduced the bipartisan Copyright Labeling and Ethical AI Reporting (CLEAR) Act. The bill requires AI companies to file a notice with the Register of Copyrights detailing the copyrighted works used to train their models before public release, and this requirement would also apply retroactively. The Copyright Office must create a public database of these notices, and civil penalties would apply for non-disclosure. Although supported by creator unions like SAG-AFTRA and the Writers Guild of America, the bill does not mandate licensing copyrighted works, which remains a subject of litigation and fair use arguments by AI companies.
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DOJ communications with Apple and Google under scrutiny
The House Judiciary Committee has requested that the US Department of Justice provide all communications with Apple and Google regarding the removal of apps that shared information about US Immigration and Customs Enforcement (ICE) sightings. These apps were taken down in October, prompting Representative Raskin to write to Attorney General Pam Bondi. Raskin criticized the removal, referring to it as an example of concerning government influence on platform moderation, and suggested it might be an attempt to limit information critical of the administration’s actions.
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Paramount Skydance sweetens bid for Warner Bros Discovery
Paramount Skydance has attempted to make its $108.4 billion, $30 per share bid for Warner Bros Discovery more appealing to shareholders, who are also considering an $82.7 billion deal with Netflix. The bid includes a 25-cent per share “ticking fee” of about $650 million quarterly for any delays past early 2027 and an agreement to cover the $2.8 billion breakup fee Warner Bros would owe Netflix, suggesting Paramount’s confidence in regulatory approval, though some analysts believe the overall offer is still too low.
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Bluesky finally adds drafts
Social network Bluesky, which launched publicly in early 2024 and now has over 42 million users, is finally adding a drafts feature, a basic capability already offered by competitors like X and Threads. This new feature is being rolled out as the company also focuses on future improvements such as enhancing its algorithmic Discover feed, providing better follow recommendations, and making the app feel more real-time, even while admitting it still needs to implement essential features like private accounts and longer video support to catch up with rivals.
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India tightens social media and AI rules
India has enacted new, stricter social media rules that mandate platforms to fulfill government content removal orders within three hours, label AI-generated content prominently, and issue quarterly warnings about user penalties. These amendments are designed to increase government control over online dialogue and hold tech companies accountable for illegal material, such as “synthetic” content and explicit images, following a recent complaint involving an AI bot on X.
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Russia moves toward more Telegram restrictions
Russia’s state communications watchdog, Roskomnadzor, announced it will impose further restrictions on the messaging platform Telegram, citing the platform’s failure to comply with Russian law, including protecting personal data and countering fraudulent and criminal use. This action is part of a broader trend of Russian authorities clamping down on foreign-based tech providers, following previous restrictions on Telegram’s voice and video calls and the blocking of Apple’s FaceTime. Roskomnadzor confirmed it will continue to impose successive restrictions until Telegram ensures compliance with Russian legislation and citizen protection.
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YouTube adds AI playlist generation for Premium users
YouTube is launching an AI-powered playlist-generation feature for Premium subscribers on iOS and Android. This allows users to create playlists using text or voice prompts (e.g., “raging death metal”) via the “AI playlist” option in the Library tab. This initiative aims to boost the value of the Premium offering and follows similar AI features implemented by competitors like Spotify, Amazon Music, and Deezer.
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