Google ad track changes, implosions for the entertainment industry and Square buys Tidal

Episode Summary

Executive Summary: Kara Swisher and Scott Galloway discuss pandemic-era public-health politics, Twitter Spaces and subscription strategy, Square’s confusing Tidal acquisition, Google’s move away from third-party ad tracking, and the continuing collapse of traditional entertainment distribution. They also answer a listener question about entrepreneurship for an immigrant student, emphasizing visas, immigration policy, and the value of diverse partners.

Main Topics: Anti-mask politics and vaccine advocacy (Priority: 5/5): They mock anti-mask and anti-vaccine sentiment, praise Dolly Parton as a pro-vaccine public figure, and note that vaccine access is improving as the Biden administration expands supply. Twitter Spaces and Twitter’s product direction (Priority: 4/5): Kara describes using Twitter Spaces, a Clubhouse competitor, and argues that Twitter is showing more product momentum, especially around subscriptions and audio-based engagement. Square’s acquisition of Tidal (Priority: 5/5): They debate Jack Dorsey’s decision to have Square buy Tidal, arguing it makes little sense for Square but would have been more logical for Twitter as a vertical content play. Google’s shift away from ad tracking (Priority: 5/5): Google announces it will stop selling ads based on specific web browsing data, prompting a discussion of privacy, antitrust pressure, and how this affects the ad ecosystem. Streaming, movie theaters, and the decline of legacy entertainment (Priority: 4/5): Alamo Drafthouse’s bankruptcy and collapsing Golden Globes ratings are used to argue that movie theaters and live entertainment are under severe pressure from streaming and home viewing. Immigration, entrepreneurship, and startup advice (Priority: 4/5): A listener asks how to start a business as a Taiwanese student in the U.S.; the hosts discuss visa barriers, the importance of immigration reform, and advice to choose complementary cofounders. Acquisitions, SPACs, and value creation in tech (Priority: 3/5): They speculate on future deals by Roku and Shopify and discuss how public-market valuations can fuel acquisitions and vertical integration across media and commerce.

Key Arguments: Anti-mask and anti-vaccine resistance is irrational and politically performative, especially compared with the urgency of getting vaccines into arms. Dolly Parton is praised as a model citizen and cultural figure because she supported vaccine development and publicly encouraged vaccination. Twitter Spaces is promising because it leverages Twitter’s existing graph and can create intimate, interactive audio communities. Square buying Tidal is strategically confusing because music content fits Twitter’s media ambitions better than Square’s payments business. Google’s move away from web-level ad tracking is framed by Scott as a monopoly-preserving move that mainly shifts power toward Google rather than reflecting pure privacy concern. Traditional entertainment distribution is being hollowed out as consumers prefer flexible, cheaper, at-home alternatives. A successful startup founder should find cofounders with different skills and backgrounds rather than trying to build alone. Immigrant founders are an important source of American innovation, and visa policy should better support high-skilled entrepreneurial talent. Roku and Shopify, with strong valuations, should pursue acquisitions to go vertical into content, ads, logistics, or commerce infrastructure.

Data Points: SoFi refinancing rate: as low as 4.24% APR - Ad read promoting student-loan refinancing SoFi members: over 580,000 members - Ad read citing existing customer base SoFi loans refinanced: more than $50 billion - Ad read citing total volume refinanced U.S. adult vaccine supply timing: by the end of May - Biden announcement that enough vaccines would be available for every adult in the U.S. Twitter Spaces audience: about a thousand people - Kara describes a live Twitter Spaces event she hosted Google share of global digital ad spending: 52% - Discussion of Google’s market power in ad technology Global digital ad spending: $292 billion - Referenced as last year’s global digital ad market size Mobile ad spending share: 68% - Used to note that Google’s policy change does not cover the largest part of digital ad spend in the U.S. Golden Globes ratings decline: down more than 60% - Viewership fell sharply versus the prior year Golden Globes viewers last year: 18.3 million - Baseline for the ratings comparison Golden Globes current audience: 6.9 million - Current viewership cited during the discussion Paramount Plus price: $6 a month - Used to contrast streaming value with the cost of going to theaters Perceived monthly subscription spend: $84 vs actual $230 - They cite research showing consumers underestimate subscription spending Spotify-Joe Rogan effect: no specific number given - Referenced as an example of stock appreciation from proprietary content, without a number

Pivotal Quotes: "How will humans shape AI?" — Narrator/Ad read: SAS sponsorship copy introducing responsible AI "This is exhibit C of why Google should be broken up in my view." — Scott Galloway: Scott’s critique of Google’s decision to stop selling ads based on specific web browsing data "Find someone who looks, smells, and feels differently than you." — Scott Galloway: Advice to the listener on choosing cofounders and business partners

Implications: Listeners are pushed to see privacy, subscriptions, and vertical integration as the big business battlegrounds. The episode suggests legacy media and ad models are weakening, while immigrant talent, creator monetization, and platform consolidation will shape the next wave.