VOLUME 66

These newsletters usually get sent out every Thursday but yesterday was… hectic. I just got back from Europe after speaking at Web Summit in Lisbon, so I had a lot of catching up to do.

Also, to all of y’all who are subscribed to this — I appreciate you. Just to give you a heads up, I’m planning to steer The Pace Report a lot more towards diving deeper into the ever-growing creator economy, discussing trends in the space and insights from creators, social media platforms — that sort of thing, less general tech/culture news. It’s a space that’s really calling me that I’d love to share more of my learnings about.

So if that sounds interesting to you, I encourage you to stay along for the ride! If not, maybe be a bit open-minded, no?

Let’s get into it this week’s biggest stories!

— Jacob Pace

ByteDance's $300 Billion Valuation Amid U.S. Regulatory Challenges

What happened: ByteDance, the parent company of TikTok, has recently valued itself at approximately $300 billion following a share buyback offer at $180 per share. This valuation comes as the company faces potential regulatory actions in the United States, including a possible ban on TikTok unless ByteDance divests its ownership by January 2025.

What’s next: ByteDance is currently engaged in legal challenges against the U.S. government's divestiture mandate. The outcome of these proceedings will be pivotal in determining TikTok's future in the U.S. market and could set precedents for other foreign-owned tech companies operating under similar scrutiny. President-elect Donald Trump, set to assume office on January 20, 2025, has previously expressed intentions to "save TikTok," indicating potential policy shifts that could influence the platform's operations in the U.S.

Spotify Challenges YouTube with New Video Monetization Strategy

What happened: Spotify has announced a new initiative to pay video podcast creators based on engagement metrics, aiming to attract content producers from platforms like YouTube. Starting in January, creators in the U.S., U.K., Australia, and Canada will be eligible for this program, provided they meet specific criteria, including hosting content on Spotify and achieving certain viewership milestones.

More details: To qualify, creators must host their content exclusively on Spotify, accumulate 10,000 streamed hours from 2,000 unique users over 30 days, and have at least 12 published episodes. Though Spotify has not disclosed exact payout rates, industry estimates suggest creators could earn approximately $50,000 per month for shows that generate between 1 to 2 million views. This positions Spotify’s revenue model as potentially more rewarding per view than YouTube, making it an attractive option for video creators.

Jake Paul vs. Mike Tyson Match Breaks Streaming Records

What happened: On November 15, Netflix streamed the highly anticipated exhibition fight between Jake Paul and Mike Tyson, drawing an unprecedented 108 million viewers globally. The event peaked at 65 million concurrent streams, making it Netflix’s most-watched live event ever. Held at Madison Square Garden, the fight also brought in $18 million in ticket sales, with over 72,000 attendees.

Why it matters: This fight showcases the shifting dynamics of sports entertainment, as Netflix bypassed the traditional pay-per-view model, relying instead on its subscription base. The pairing of Paul, a social media star-turned-boxer, and Tyson, a legendary heavyweight, brought together a diverse audience and demonstrated the viability of live sports on streaming platforms.

What to watch: Despite its success, the event wasn’t without issues. Technical glitches led to viewer complaints and a $50 million class-action lawsuit. Netflix has pledged to improve its live-streaming capabilities as it plans future live sports programming.

TikTok Explores Serialized Minidramas to Diversify Content

What happened: TikTok is planning to introduce serialized minidramas, short episodic videos designed for mobile viewing. The move follows the success of similar content on its Chinese counterpart, Douyin, and reflects the platform’s effort to tap into the growing popularity of structured storytelling on social media.

Why it matters: Minidramas are emerging as a major trend, blending traditional TV elements with mobile-first formats. For TikTok, they offer a way to keep users engaged longer, attract advertisers looking for premium content, and compete with platforms like YouTube and Instagram, which are also exploring episodic formats.

That’s all for this week! See you next time.