It’s Monday and no one trusts in the power of AI quite like Lyzr, a startup that recently put its own AI agent in charge of running a $100 million funding round.

REVERSING COURSE

The feature: On July 7, Meta announced the launch of Muse Image, which it described as “our most advanced image generation model yet.”

In the same post (which also offered a preview of an upcoming model called Muse Video), Meta revealed that creators would be able to “@-mention Instagram accounts in the Meta AI app to bring specific Instagram profiles right into your images.” Users who didn’t want their likeness or content used in AI images would either have to manually opt out or make their profiles private.

The response: Community backlash over the new feature was swift and wide-ranging. Privacy International told BBC that Muse Image was “the latest sign AI companies see people’s images and data as raw material to be exploited,” while CAA said it had “raised our concerns with Meta.” SAG-AFTRA voiced its own disapproval on X, where it urged “all Instagram users” to “take action to protect your likeness.”

Finally, in an update posted July 10, Meta confirmed that users would no longer be able to generate AI images “by @-mentioning public Instagram accounts that they want to reference.”

The context: Meta is far from the only platform to update or remove new features in response to community backlash. In 2025, YouTube chose to provide an opt-out option in response to creator concerns over an experiment with AI-powered Shorts denoising; two years earlier, Twitch famously rolled back unprecedented restrictions on branded content after widespread outcry.

As the AI boom carries on and platforms continue to push the limits with new features, we’re likely to see more scenarios like this one play out. In the case of Muse Image, however, Meta’s decision to reverse course is a sign that the company is still listening to its community.

HAVE YOU HEARD?

Each week, we handpick a selection of stories to give you a snapshot of trends, updates, business moves, and more from around the creator industry. This time around, we’ve got Shark Tank appearances, legal battles, and a creator wrestling collab.

Creator Commotion

MrBeast is making his Shark Tank debut. YouTube’s most-subscribed-to creator will join Season 18 of the show alongside Beast Industries CEO Jeffrey Housenbold. Other guest sharks will include Mindy Kaling, NFL vet J.J. Watt, Favorite Daughter co-founders Erin and Sara Foster, and Diary of a CEO host Steven Bartlett.

Channel 5 is fighting a legal battle. In a July 10 video, Andrew Callaghan revealed that Channel 5 is facing “crippling legal debt” due to an ongoing lawsuit. Four hours later, a GoFundMe campaign for Channel 5’s legal defense met its goal of $800,000.

The Biz

Are Feastables fans sugared out? According to a report from Business Insider, growth at MrBeast’s snack brand “has slowed considerably in the last year,” with U.S. sales volume growing 13% year-over-year in 2025 versus 33% in 2024.

Fidji Simo is switching gears. Simo has announced plans to step down from her position as OpenAI’s CEO of AGI deployment amid an ongoing battle with chronic illness. The Instacart vet will pivot to a part-time advisory position at OpenAI.

Fight Club

PUBG: BATTLEGROUNDS is entering the Octagon. The battle royale game has joined forces with Kick and UFC star Max Holloway for a multi-platform campaign. The action began last week when Holloway donned a custom KICK × PUBG-branded vest for the UFC 329 Press Conference.

Streamers are taking on the wrestling world. A “first-of-its-kind” collaboration between Warner Bros. Discovery, All Elite Wrestling, and Twitch brought top streamers to the arena for the premiere of AEW Dynamite: Beach Break. Creators Agent00 and CashNastyGaming delivered “exclusive live content” before and during the wrestling program, which took place on July 8.

STREAMING BIG

The possibilities: It’s no secret that streaming services are struggling to keep pace with YouTube. Google’s video platform now claims a commanding share of connected TV watch time worldwide, making it an imposing rival for traditional TV outlets and fellow streaming services alike.

Netflix’s strategy for taking on YouTube has included a recent rash of creator signings, a podcast push, and a growing emphasis on live sports. But while the streamer bulks up its library with digital-native content from YouTubers, Disney Plus is reportedly taking a different approach.

According to Business Insider, Disney is mulling over the possibility of introducing a free ad-supported tier to its flagship streaming service. A staffer noted that product and tech chief Adam Smith mentioned the potential addition of a free-tier content during a streaming town hall on July 9. 

The context: Disney Plus has already introduced always-on channels (something Netflix is reportedly considering as well), along with short-form vertical content. The addition of a free tier would give Disney Plus an edge over services like Netflix, Apple TV, and Amazon Prime Video while allowing it to tap into the significant viewership growth achieved by free-to-watch services like Tubi and The Roku Channel. 

As BI noted, recent Nielsen data shows that “the three largest free streamers accounted for 18.7% of watch time on US TVs in April, up from 16.8% a year earlier and 12.7% in April 2024.” 

Young viewers are especially likely to choose free ad-supported streaming television (FAST) over subscription-based content. According to Comcast, 53% of Gen Zers have canceled a subscription-based streaming service in the past year; in the same period, 47% have watched FAST content.

If Disney hopes to stay in the race against YouTube, then, getting into the FAST lane could be the way to go.

LISTEN UP 🎙️

The episode: On the latest installment of Creator Upload, hosts Lauren Schnipper and Joshua Cohen break down YouTube's push for Emmy validation before delving into Netflix's new strategy to compete with YouTube by partnering with digital publishers.

Also on the agenda is an appearance by Tubefilter’s own Sam Gutelle, who joins the show to discuss the massive battle for the upcoming FIFA World Cup broadcast rights.

Check out the full episode on Spotify and Apple Podcasts for all the details.

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Today's newsletter is from: Emily Burton, Drew Baldwin, Sam Gutelle, and Josh Cohen.