Transcript
Brian McCullough (0:04)
Welcome to the TechMe Ride Home for Tuesday, January 21st, 2025. I'm Brian McCullough today. All right, I'll sum up everything that happened this weekend with TikTok, but also get to all of the changes that the new Trump administration has made, which is relating to tech in just the past 24 hours. How folks are trying to eat TikTok's lunch should Apple buy Sonos and the IMDb loses its founder after 25 years. Here's what you missed today in the world of tech. So a whole bunch of news to catch you up on. Obviously, President Trump signed an executive order that pauses the TikTok ban for 75 days to give ByteDance more time to reach a deal and provides a liability shield to TikTok's providers. More on that in a second. Specifically, though, this is an executive order telling the Department of Justice not to enforce the rule. The actual law has not been overturned, which is kind of important. Quoting the Verge the executive order directs the Attorney General not to take any action to enforce the act for a period of 75 days from today to allow my administration an opportunity to determine the appropriate course forward in an orderly way, end quote. The Attorney General is supposed to, quote, issue a letter to each provider stating that there has been no violation of the statute and that there is no liability for any conduct that occurred, end quote. The order furthermore instructs the Department of Justice to take no action to enforce the act or impose any penalties against any entity for any non compliance with the act and says they should be barred from doing so, quote, for any conduct that occurred during the above specified period or any period prior to the issuance of this order, including the period of time from January 19, 2025 to the signing of this order, end quote. You might have noticed that over the weekend TikTok was down with a legal notice. If you tried to go there, then it was back up with a notice thanking President Trump for coming back alive. But here's the thing. This is still in a crazy legal gray area because legal experts and lawmakers are saying Trump's executive order may not protect companies that host or distribute the app, as Trump cannot overturn a law by Congress. It just kind of doesn't work that way in a Schoolhouse Rock. This is how a bill becomes a law sort of thing. Quoting the Washington Post, Senator Tom Cotton, chair of the Senate Intelligence Committee, warned Sunday after Trump detailed his TikTok plans that companies could still, quote, face hundreds of billions of dollars of ruinous liability under the law even if Trump's Justice Department does not enforce it. Trump's executive order warned against states trying to do so, stating that, quote, attempted enforcement by the states or private parties represents an encroachment on the powers of the executive. Senator Lindsey Graham, a top Trump ally, said Sunday that Cotton was, quote, right to make sure that the terms of the statute requiring qualified divestiture are followed. House Speaker Mike Johnson said in an interview Sunday that despite Trump's pledges to save the app, he expected that the Trump administration, quote, will enforce the law and pursue, quote, a true divestiture, end quote. Under the banner sale law, the president has some leeway to define what a qualified divestiture of the app would be. The law, however, requires that the sale results in TikTok and other ByteDance owned apps, quote, no longer being controlled by a foreign adversary. The stipulation appears to conflict with Trump's apparent plans to give ByteDance an ongoing role in partially overseeing the app. It remains to be seen whether companies will think they have enough legal cover to fully restore service to TikTok under Trump's executive order. While Trump's initial assurances were enough to get some of TikTok's providers to bring the platform back online Sunday, others continued to keep it off their products. TikTok's app remained unavailable on Google and Apple's app stores on Monday evening. The law threatens fines of $5,000 per user per day for any company deemed in violation, including app stores and Internet hosting services that carry the platform. TikTok says it has 170 million users nationwide. Reinstating TikTok moved the company's, quote, legal exposure from $0 to $850 billion on a premise from a president who flipped 180 degrees on this issue, bloomberg intelligence analyst Matt Shettenhelm wrote. On X, $150 billion is quite a bit of legal exposure. So even if TikTok is technically still live, the companies in the background here, people like Oracle and the app stores, especially from Apple and Google, seem to still need to tread lightly. As of the time of this recording, I believe you still can't download TikTok from an app store, but I just don't want to delete my app on my phone to try to find out for sure. Anyway, President Trump also signed an executive order renaming the US Digital Service to the US Doge Service, quoting TechCrunch. The US Digital Service is set to have around 20 employees, Trump said during the executive order signing ceremony. Despite its name, it isn't a federal executive department, which would require an act of Congress to create. The executive order instructs U.S. agency heads to consult with USDS to form Doge teams of at least four employees within their agency within 30 days. Teams will typically include a DOGE team lead engineer, HR specialist and attorney, per the Executive Order, and work with the USDS and agencies in which they're housed to implement Trump's DOGE plan. Among other things, the Executive Order establishes a software modernization plan to improve government network infrastructure and IT systems and gives the USDS access to unclassified agency records, software systems and IT systems consistent with law. The Executive Order also creates a temporary organization, the U.S. dOGE Service temporary organization dedicated to advancing President Trump's 18 month DOGE agenda. The organization is set to terminate on July 4, 2026. Trump previously said that Doge's work must be completed by no later than July 4, 2026, before the Ohio gubernatorial election in November 2026. It remains to be seen whether the Executive Order survives coming courtroom battles. No fewer than three lawsuits have been filed in federal court alleging that the Musk led DOGE violates the transparency requirements of the Federal Advisory Committee Act, a 1972 law that requires federal advisory committees to hold meetings publicly and represent balanced perspectives, end quote. Speaking of Elon there, word is he will have an office in the White House now, the better to work on these Doge initiatives. I want to come back to TikTok for a minute here just obliquely. One thing I know is sort of down right now is Cap Cut, the video editing program from TikTok. I do subscribe to that and I got logged out of it over the weekend and can't quite log back in successfully yet. I'm afraid to pay money to turn on the subscription again in case that money again goes into some sort of legal gray area. But Brian, why are you telling us about a video editing program being down? Well, do you know that Capcut reportedly has or had 200 million monthly active users? You heard that right, 200 million. Basically everything you see on TikTok on Reels, whatever these days, it's all edited on Capcut by folks. So this weekend Meta unveiled Edits, a video editing app quite like Capcut, apparently coming in February on iOS and later on Android. Quoting TechCrunch, Instagram head Adam Mosseri said on threads that the app will launch next month on iOS with an Android version following later. He added that the company is working with select creators to gather feedback about the app. Today we're announcing a new app called Edits. For those of you who are passionate about making videos on your phone. There's a lot going on right now, but no matter what happens, it's our job to provide the best possible tools for creators, he wrote. Mosseri said the app will have a suite of creative tools, including a dedicated tab for inspiration, a tab for keeping track of ideas, and a high quality camera. Plus it will have the ability to share draft versions of creations with friends or collaborators. He added that creators would be able to see insights on how videos made through edits are performing on Instagram after publishing. In a separate post, he emphasized that the app is more for creators than casual video makers, which is hard to quantify in measurable terms. Meta has historically made moves to fill in gaps in the market when they become available. When TikTok was banned in India in June 2020, it launched a similar product, Instagram Reels, days later in early July. In 2023, the company also launched Threads, a ravel to text based social networks such as X. The company likely realizes that a lot of video creators will try another tool in the absence of capcut, and even if the app is restored, the uncertainty will create opportunities for other tools. Yes. Also to take advantage of the uncertainty over the weekend, X launched a short video tab in their app that basically functions like TikTok to surface short form video and BlueSky has some sort of TikTok mode that I haven't been able to test out yet. This is quoting Windows Central. BlueSky now supports custom feeds for videos that you can navigate by swiping. To enter the new mode, you need to swipe up when viewing a custom video feed. Any custom video feed should work, but bluesky shared a link to its trending video feed as an example. You can customize the experience for custom feeds, such as enabling the option to swipe vertically to view a new video within BlueSky settings. The AT Protocol Developers community is also working on video only apps that use bluesky as a source for content. One of those apps, Skylight, says that it is using Atproto to build a TikTok alternative. Another app called Bluescreen states that a short video client for bluesky is coming soon. End quote. And one more thing, the information says Meta is offering creators with large TikTok followings bonuses ranging from 10 to $50,000 per month to post on Instagra reels instead of other platforms. Nice work if you can get it. This episode is brought to you by IQ Bar, our exclusive snack sponsor. I started my morning with I.Q. joe, a jitter free coffee that has natural caffeine and boosts my focus and mood with its magnesium and Lion's Mane blend. My wife grabbed an IQ Bar as an on the go snack because it satisfies hunger with no sugar. Crash threw it right in her purse heading to the train. Start the new year off right with us with IQ Bars, Brain and Body Boosting Bars, hydration mixes and mushroom coffees. Their Ultimate Sampler pack includes all three. And right now IQ Bar is offering our podcast listeners an exclusive deal. 20% off all IQ Bar products plus get free shipping. I've got the Ultimate Sampler Pack. It's a great way to try all IQ Bar products and flavors. You get seven IQ Bars, four IQ Mix Sticks and four IQ Joe Sticks. IQ Mix is a zero sugar drink mix that hydrates with electrolytes, improves mood with magnesium and boosts clarity with Lion's Mane Aptogen. The Lemon Blueberry IQ Bar is my personal favorite when it comes to the bars along with Banana Nut and IQ Bar makes the number one brain and Body nutrition bar, hydration mix and instant coffee in the U.S. right now IQ Bar is offering our special podcast listeners 20% off all IQ Bar products plus get free shipping. To get your 20% off, just text Techmeme to 64,000. Text Techmeme to 64,000. That's Techmeme to 64,000. Message and data rates may apply. See Terms for details. If you're a security or IT professional, you've got a mountain of assets to protect devices, applications, employee identities plus the scary stuff outside your security stack like unmanaged devices, shadow IT apps and non employee identities. It's a lot. Fortunately you can conquer those risks with 1Password extended access management. You know I use 1Password personally, but get this 1Password device trust solution blocks unsecured and unknown devices before before they access your company's apps. And don't worry, 1Password still protects against the biggest attack source compromise credentials. Its industry leading password manager helps employees create strong unique logins for every app. Secure devices check. Secure credentials check. What About Employee Productivity? 1Password Extended Access Management empowers hybrid employees to join the security team with end user remediation that teaches them how and why to fix security issues without needing help from it. Go to 1Password.com Ride to secure every app, device and identity, even even the unmanaged ones. Right now my listeners get a free two week trial at 1Password.com Ride. That's 1Password.com Ride. Speaking of uncertainty, rumors are swirling that Apple might take advantage of Sonos recent troubles by maybe buying them. But in his newsletter this weekend, Mark Gurman said. Probably not. Apple could snap up Sonos for $2 billion or so less than it paid for Beats, and it would only cost them a few days worth of revenue. Sonos hardware could also shore up Apple's disappointing HomeP and home audio lineup, but I don't believe Apple will ever acquire Sonos. If Apple really wanted to build out its home audio business, it already has the hardware, software, content and manufacturing shops internally. It's just about wanting to get things done properly, something that Apple is already working on. Later this year, it will launch its own Home Hub and a new HomePod mini. The only things it would gain from Sonos are a user base, a collection of patents and the employees, none of which Apple needs. Sonos software is obviously something Apple wouldn't want, especially in its current state, and audio hardware has become heavily commoditized. Other potential suitors, such as Meta Alphabet's, Google and Microsoft, wouldn't make much sense either. Meta has all but exited the smart home, choosing to focus on AI and wearables instead. Google has a painful history with Sonos involving patent lawsuits, and Microsoft has increasingly scaled back its interest in non Xbox hardware in recent years. Still, there are some major technology companies that might consider the idea. That list includes Amazon, Samsung, Roku and Spotify. Amazon seems like the most natural fit, with former Microsoft chief Product Officer Panos Panay now leading its hardware efforts. The expectation is that Amazon will revamp its device lineup and shift towards more upscale offerings. Sonos speakers already work with the entire streaming music industry and are certainly high end. Sonos premium technology could be the basis for a series of new Amazon Echo devices running the upcoming AI infused Alexa digital assistant. It would also help Amazon expand into new areas such as over ear headphones and soundbars, two categories the company has explored in the past. Amazon could certainly afford to buy Sonos, though it would have to overcome regulatory hurdles. Don't forget Amazon had to back out of a deal to buy Roomba maker Irobot after the European Union threatened to block the acquisition. A European company like Spotify might have an easier time getting a deal cleared. The streaming music service has championed the idea of hardware products that can run services from several different players, which Sonos does well. Spotify has long wanted to get into hardware but struggled to make it happen. Sonos would give them an instant entry with an excellent range of products that could run its audio services. Roku is another possibility, though it would probably face antitrust concerns. After all, the company already sells a set of low end sound bars and TV speakers. If it could make a deal work, Roku would get high end products that could potentially command higher profit margins. One caveat though, this may need to be an all stock based deal given Roku doesn't have as much cash on hand as its bigger rivals. Samsung is a wild card. The company already sells soundbars and subwoofers and even acquired the Harman brand in 2017, but it's failed to crack the home speaker speaker space. It announced an Echo like speaker called the Galaxy Home several years ago, but never actually brought it to market. Sonos would help it create a more consumer focused line of home audio gear and provide more modern technology for its home theater products. For consumers though, the best scenario is probably Sonos figuring things out and remaining independent, which is the current goal of the company. With the world's biggest tech giants expanding into every facet of our lives, there is something appealing about an independent brand that plays nice with with all the platforms, it's just unclear how long Sonos will be able to do it alone. End quote. Finally today, and this is a bit out of left field cause I'm not sure that we've ever spoken about them really on this show, but the Internet Movie Database says founder Cole Needham will step down as CEO and move into an Executive chair position. Nikki Santoro, who has served as IMDb's chief operating officer since 2021, has been appoint CEO, becoming only the second chief executive in the site's 35 year history. Two things that you may not know. First, Amazon owns IMDb. I had forgotten that. And second, it was founded by Needham all the way back in 1990. That's like before the web was really a thing. Quoting Variety after starting a computer games software business at the age of 14, Needham earned a computer science degree at Leeds University before commencing a career in technology research in Bristol in the UK. According to his bio, IMDb grew out of a personal database of movie information which Needham had created as a teenager, combined with similar data collected on the Internet in the late 1980s and early 90s. IMDb, which caters to both fans and industry professionals, claims to have 250 million monthly visitors. The site's products and services include the IMDb website for desktop and mobile devices, apps for iOS and Android, and X Ray on Prime Video, which provides viewers additional information about movies and TV shows. For entertainment industry professional, IMDb offers the IMDb Pro subscription service and Box Office Mojo. IMDb also licenses information from its database to third party businesses worldwide. In 1998Amazon bought IMDb one of its first acquisitions for $55 million. End quote. So yesterday I was watching the back and forth with TikTok thinking should I do a show? But it was, as I say, so much back and forth you couldn't really tell what was going on from hour to hour. So it's probably better we waited just to do a sum up today. But the thing that really pushed me over the edge in terms of not doing a show yesterday was the fact that we woke up here in Brooklyn to snow and the kids were off school. So it was either do a show or go sledding with the kids all morning. Morning. I chose accordingly. If you check my socials, either X or blue sky, you can see a video of the kids sledding and going on such an epic run. Actually, they run smack into a fence that was about a football field away. Good times. Talk to you tomorrow.
