When you must be on the cutting edge of the intersection of finance and technology at all times, it pays to be an adamant reader.
Books are obviously a huge source of information for the world’s best investors – and we’ve looked at their book recommendations in the past – but perhaps even more telling is what they read on a day-to-day basis.
Today, we get a snapshot of the morning reading of top notch venture capitalists to see how they get the perspectives, inspiration, and insights that help drive their investments.
Morning Reading for Tech Investors
Nearly every guest on the podcast is asked to provide a blog recommendation, and Hovde has visualized this information.
The most cited blogs include AVC, Term Sheet, Mattermark Daily, and the Ben Evans Newsletter:
Despite the wild amount of variance in recommendations, here are the top seven with brief summaries and links:
- Term Sheet
- Mattermark Daily
- Ben Evans Newsletter
- Feld Thoughts
- The Information
- Strictly VC
Internet commentary from Fred Wilson, a prominent NYC-based venture capitalist. (Free)
This widely-read newsletter at Fortune was authored by Dan Primack until a month ago. However, Primack left to start a new venture. Now the column has been taken over by Erin Griffith. (Free)
A human-curated newsletter that brings perspectives, insights, and lessons learned from investors and operators in the startup ecosystem. (Free)
Benedict Evans is a partner at Andreessen Horowitz, and his newsletter highlights interesting links in technology each week. (Free)
Brad Feld has been an early-stage investor since 1987, and is best known for co-founding startup accelerator Techstars. (Free)
Not the album by Beck. Instead, it’s a popular subscription newsletter headed by Jessica Lessin that focuses on deeply-reported articles about the technology industry that can’t be found elsewhere. ($39/month)
A daily email by Connie Loizos that provides readers information related to venture capital firms, finance, and business investment. Loizos is also the Silicon Valley editor for Techcrunch. (Free)
Here’s the data again, sorted by author:
Some additional names that stand out here include Tim Ferriss, James Altucher, Bill Gurley, Tim Urban (of Wait But Why fame), and Paul Graham.
Feel free to recommend other essential reading for aspiring tech investors below.
How Many Music Streams Does it Take to Earn a Dollar?
Streaming has breathed new life into the music business, but as new data shows, these services pay out wildly different rates per stream.
How Many Music Streams Does it Take to Earn a Dollar?
A decade ago, the music industry was headed for a protracted fade-out.
The disruptive effects of peer-to-peer file sharing had slashed music revenues in half, casting serious doubts over the future of the industry.
Ringtones provided a brief earnings bump, but it was the growing popularity of premium streaming services that proved to be the savior of record labels and artists. For the first time since the mid-90s, the music industry saw back-to-back years of growth, and revenues grew a brisk 12% in 2018 – nearly reaching $10 billion. In short, people showed they were still willing to pay for music.
Although most forecasts show streaming services like Spotify and Apple Music contributing an increasingly large share of revenue going forward, recent data from The Trichordist reveals that these services pay out wildly different rates per stream.
Note: Due to the lack of publicly available data, calculating payouts from streaming services is not an exact science. This data set is based on revenue from an indie label with a ~150 album catalogue generating over 115 million streams.
Full Stream Ahead
One would expect streaming services to have fairly similar payout rates every time a track is played, but this is not the case. In reality, the streaming rates of major players in the market – which have very similar catalogs – are all over the map. Below is a full breakdown of how many streams it takes to earn a dollar on various platforms:
|Streaming service||Avg. payout per stream||# of streams to earn one dollar||# of streams to earn minimum wage*|
|Google Play Music||$0.00676||147||217,751|
*U.S. monthly minimum wage of $1,472 **Premium tier
Napster, once public enemy number one in the music business, has some of the most generous streaming rates in the industry. On the downside, the brand currently has a market share of less than 1%, so getting a high volume of plays on an album isn’t likely to happen for most artists.
On the flip side of the equation, YouTube has the highest number of plays per song, but the lowest payout per stream by far. It takes almost 1,500 plays to earn a single dollar on the Google-owned video platform.
Spotify, which is now the biggest player in the streaming market, is on the mid-to-low end of the compensation spectrum.
The Payment Pipeline
How do companies like Spotify calculate the amount paid out to license holders? Here’s a look at their payout process:
As this chart reveals, dollars earned from streaming still don’t tell the full story of how much artists receive at the end of the line. This amount is influenced by whether or not the performer has a record deal, and if other contributors have a stake in the recorded work.
The Pressure is Heating Up
When Spotify was a scrappy startup providing a much needed revenue stream to the music industry, labels were temporarily willing to accept lower streaming rates.
But now that Spotify is a public company, and tech giants like Apple and Amazon are in the picture, a growing chorus of industry players will likely dial up the pressure to increase compensation rates.
The Global Fiber Optic Network Explained
An informative look at the global fiber optic network, how the cables actually work, and the technology that will power the 6G network.
The Global Fiber Optic Network Explained
As we scroll through Instagram or cue up another episode on Netflix, most of us give little thought to the hidden network of fiber optic cables that instantaneously shuttle information around the globe.
This extensive network of cables – which could stretch around the Equator 30 times – is the connective tissue that binds the internet, and thanks to our insatiable appetite for video streaming, it’s growing larger with every passing year.
Today’s video, by TED-Ed, explains how fiber optic cables work and introduces the next generation of cables that could drastically increase the speed of data transmission.
A Series of Tubes
The late Senator Ted Stevens drew laughter for describing the internet as a “series of tubes” in 2006, but as it turns out, most of the information moving around the world does, in fact, travel through a series of tubes. Undersea fiber optic tubes, to be exact.
The way this system functions is deceptively simple. Light, which is beamed into a fiber optic cable at a shallow angle, ricochets its way along the tube at close to light speed until being converted back into an electrical signal at its destination – generally a data center. To increase bandwidth further, some cables are able to carry multiple wavelengths concurrently.
Impressively, this simple method of bouncing light through a tube is what moves 99% of the world’s digital information.
The Glass Superhighway
Since the first undersea fiber optic cable, TAT-8, was constructed by a consortium of companies in 1988, the number of cables snaking across the ocean floor has risen dramatically. In fact, over 100 new cables will have been laid between 2016 and 2020, with a value of nearly $14 billion.
Increasing bandwidth requirements have transformed content providers from customers to cable owners. As a result, tech giants like Google and Facebook are taking a more active role in the expansion of the global fiber optic network. Google alone has at least five cable projects set for completion in 2019.
The Last Mile
Much like Amazon struggles with the “last mile” of deliveries, the transmission of digital information is much less efficient at the data center level, where servers are connected by traditional electric cables. These short-range cables are far less efficient than their fiber optic counterparts, losing half their running power as heat.
If this inefficient use of energy isn’t solved, internet-related activity could comprise a fifth of the world’s power consumption by 2030.
Thankfully, a related technology – integrated photonics – could keep the high-definition videos of the future streaming. Although the silicon wires used in integrated photonics do not guide light as effectively as fiber optics, the ultra-thin wires are far more compact. Photonic chips paired with burgeoning terahertz (THz) wireless communications could eventually form the backbone of a 6G network. Short-range THz signals would hitch a ride on silicon wires via tiny photonic chips scattered around population centers.
Before this efficient, high-capacity future is realized, researchers must first solve the puzzle of manufacturing photonic devices at scale. Once this method of data transmission hits the mainstream market, it could drastically alter the course of both computing and global energy consumption.
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