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Good morning! In an unprecedented move, major Chinese tech companies have shared some of their algorithms with China’s internet regulator. It remains to be seen whether this will lead to America demanding the same information from Big Tech.
The secret sauce of Chinese technology
Tech companies’ algorithms are typically heavily guarded. But for the first time, China’s internet regulator has released detailed information on how sausage works inside Chinese tech companies. The details are limited, but they are a good place to start.
China’s Cyberspace Administration has released a list of 30 algorithms. Used by companies including ByteDance and Alibaba, with a brief description of each algorithm.
- For example, WeChat’s “Ayu” algorithm is used in recommendations for graphic and video content. And ByteDance’s algorithm takes into account likes and dislikes when serving up content on Duyin, China’s version of TikTok.
- It’s worth noting that the list doesn’t include the exact code for each algorithm, just the names and track numbers of each algorithm, which social media consultant Matt Navara told me is unsurprising. “It would be strange for these platforms to be asked by the Chinese regulator to publicly disclose this intellectual property because it would somewhat destroy the value in some of the domestic technology success stories,” he told me.
- Privately, however, these tech companies may have provided more detailed explanations of how they update their algorithms as code and how the algorithms are used, Navara added.
The list may prompt other governments to request similar information from tech companies.
- TikTok, which only operates outside of China, was not required to share information with the agency (a document leaked a few months ago hints at how it works). ByteDance says the operations behind Tik Tok and Doyin are completely different, according to the US request.
- The U.S. and European Union have not passed any laws on feedback algorithms, such as those forcing Chinese companies to talk about their algorithms, but lawmakers have kept an eye on the platforms’ inner workings. Some lawmakers are frustrated that the Biden administration has not taken more steps to police data practices on TikTok and other Chinese platforms.
- In fact, TikTok has asked Oracle to begin investigating TikTok’s algorithms and content optimization models after the short-form video app was seized by Chinese authorities.
The next step for the Chinese regulator could be to buy more into technology platforms. Meanwhile, regulators in the US are just beginning to understand how platforms in their own countries work.
– Sarah Roach
YouTube’s helping hand
YouTube is launching a streaming video marketplace that, if done right, could spell big trouble for streaming companies as subscriber growth slows.
YouTube is in talks with various streaming services to be included in the “Channel Store”. According to The Wall Street Journal, the project will be called internally. The store allows YouTube TV customers to subscribe to various services through the main YouTube app. YouTube TV includes an option to add to a subscription services package. The channel store allows users to subscribe a la carte.
Streaming services can benefit from subscriber growth; As customer retention numbers get worse and worse.
- 19% of subscribers to premium services like Netflix, Hulu or Apple TV+ said they canceled three or more subscriptions in the past two years.
- Many subscribe to services to watch certain shows, then cancel after the season ends.
Adding subscribers may not be a “game changer.” Janko Rotgers of The Protocol told me. YouTube’s streaming service Buffet competes with similar offerings from Amazon, Roku, Apple and now, possibly, Walmart.
- But comfort is the name of the game. For example, Amazon’s Channel Store was popular because the company made it easy to subscribe to new channels through the Fire TV interface. The platform already had the customers’ credit card information, Janko said.
- If YouTube integrates its marketplace with Android TV or Google TV, it will “simplify the subscription flow” and make the process more seamless, Janko said. And this can lead to more subscribers.
– Nat Rubio-light
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