Good morning! In this weekly snapshot:

• Universal’s licensing negotiations with TikTok🎶

• B.C.’s cryptocurrency pause upheld in court ruling💰

• The weekly market update📈

TikTok Videos Silenced as Negotiations With Universal Music Group Stall

On Thursday, videos featuring certain music tracks on TikTok began to go silent after combative licensing negotiations broke down between the popular social media platform and Universal Music Group, the world’s largest music company representing popular artists including Taylor Swift, Drake, U2 and Ariana Grande.

Current Functionality of Music for Creators

TikTok's estimated 1.5 billion monthly users have the capacity to enhance their videos with music from across the main label catalogues, making it an important part of the modern music ecosystem. To prevent use of copyrighted music, TikTok scans uploads with automated content recognition (ACR) technology to cross-reference against databases of copyrighted material. However, the technology is not 100% effective in identifying violations, and so content creators may find loopholes to bypass the withdrawal.

Face the Music: Universal Puts TikTok on Blast

In an early Wednesday statement, Universal determined they would pull its tracks due to a lack of compensation for artists and songwriters. They claimed TikTok offered rates at “a fraction of the rate that similarly situated major social platforms pay," while expressing concern for the rise of AI tools in TikTok videos, threats to intellectual property, as well as "a tidal wave of hate speech, bigotry, bullying and harassment.” While TikTok responded to these allegations by refuting Universal’s “false narrative and rhetoric,” their approach moving forward remains to be seen as their massive user base and corporate partners monitor the evolving situation closely.

B.C. Pumps the Brakes on New Crypto Mining Projects

Following a recent ruling by the British Columbia Supreme Court, Conifex Timber Inc., a forestry company branching out into cryptocurrency mining, lost a bid to B.C. Hydro temporarily barring the company from tapping into the province’s energy supply. According to B.C. Hydro’s CEO Christopher O’Riley, the data centers proposed by Conifex would have utilized 2.5 million megawatt-hours of electricity every year – enough electricity to power over 570,000 apartments.

Decrypting Crypto Mining

Crypto mining is a complex process where computers, known as miners, compute mathematical puzzles to validate and secure transactions on blockchain networks. A blockchain is a digital ledger or record book that stores information about transactions and is distributed to a network of computers. When the miners reach a correct solution, they are rewarded with cryptocurrency. The intensive energy demands of crypto mining operations stem from its need to power and cool the specialized hardware used for such intense computations.

A Power Predicament

Several provinces have been grappling with increasing power demands due to population growth, shifts towards greener energy, and extreme weather events. Across Canada, provinces have been enacting measures to address the energy demands posed by crypto-mining operations. Even Alberta, traditionally more receptive to crypto ventures, levied a $400,000 fine against a crypto company for operating three unauthorized mining facilities.

Looking Ahead: With concerns arising about its environmental impact and strain on energy infrastructure, the Department of Energy will begin collecting data on the electricity use of crypto mines to clarify crypto’s impact.

📈 Market Updates

Economic Pulse 🌐 

Toyota has announced a 1.3 billion dollar investment into a new Kentucky plant to develop a three-row all-electric SUV. Production is not expected to begin until the end of 2025. The plant is part of a 35 billion dollar investment in electric vehicles. In other news, Apple released its new Vision Pro this past week. Apple's latest product was only released in the USA, creating secondary markets across the globe. In Asia, resale prices for the Vision Pro have reached upwards of 5000 USD, with some sellers in Singapore asking for 8500 USD for a new headset. 

Money Moves 💰️ 

This past week, Disney purchased a 1.5 billion dollar stake in Epic Games, Fortnite's parent company. Disney has agreed to fund a 'multi-year' major expansion that marks its largest investment ever in the gaming industry. In other news, Adam Neumann, one of WeWork's co-founders, has announced his intent to purchase the bankrupt company. Neumann has raised 350 million dollars through his real estate company Flow Global and has enlisted the support of the hedge fund mogul Dan Loeb. 

👀Job Opportunities

• Vantage Marketing is hiring a Intern for this summer.

• Gildan is looking for a Business Intelligence Intern.

• Oeson is looking for someone for their Business Analytics Internship.

• Live Nation Entertainment is hiring a student with a business background for their Marketing Internship.

📞Word on the Street

• Trudeau and Ford sign a $3.1 billion health-care funding deal

• “Beer tax” increase in effect April 1st.

• Super Bowl 2024 recap.

Writers: Jeremiah Lim, Simon Ing and Tomas Serrano

Senior Editor: Amyn Dehal

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