Humans Are Back in Style at Tech Companies

Strategic Insights -

Humans are replacing algorithms and data at technology companies as Apple, Facebook, and Twitter opt for good old-fashioned curators. These human curators add significant expenses for these companies. Apple's new music-streaming service will offer curated playlists from three DJs, setting it apart from Pandora and Spotify, which use only algorithms. Facebook and Twitter are also adding a human touch to their newsfeeds.

Key Takeaways:

  • Apple launched its new music-streaming service, which will offer curated playlists from three DJs, setting it apart from other music-streaming services like Pandora and Spotify.
  • Facebook and Twitter are hiring editorial teams to comb through content and organize tweets in relevant ways.
  • Apple is adding a human element to its upcoming Apple News product, which will feature news stories from various publications handpicked by Apple editors.
  • Human curators solve issues that come with algorithms, like when Facebook's automated "Year in Review" surfaced unwanted photos of lost loved ones for certain users.
  • Human curation can also bring a celebrity element, such as having a popular musician like Beyonce curate a playlist.
  • Companies like Apple and Facebook can afford to experiment with human curation, but for companies like Twitter with less cash, it may not be sustainable.

Statistics:

  • Apple ended last quarter with $193.5 billion in cash, cash equivalents, and marketable securities.
  • Facebook had $12.41 billion in cash at the end of the last quarter.
  • Twitter ended the most recent quarter with $3.6 billion in cash, cash equivalents, and marketable securities.
  • Human curation can be expensive, but companies like Apple and Facebook may be able to charge a price premium for it or appeal to niche segments where the economics work.

Sources:

  • TheStreet.com
  • AT Kearney
  • About Twitter
  • Pigeonsandplanes.com
  • AT Keystone