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Roblox creates 17,840 jobs
Read time: 4.5 minutes.
TOGETHER WITH
It’s Friday and Facebook will soon be full of hot air—or at least powered by it, thanks to a new deal between Meta and green energy supplies Sage Geosystems.
🗞️ Today’s News 🗞️
Roblox celebrates $1.2 billion generated between 2017 and 2023
Ibai Llanos’ influencer boxing event snags him a spot in the charts
TikTok faces a lawsuit over the viral “blackout challenge”
A Twitch feature threatens to expose VTubers
Sabrina Carpenter enjoys the sweet “Taste” of TikTok virality
READING THE DOLLAR SIGNS
Roblox generated $1.2 billion in the U.S. creator economy between 2017 and 2023
The report: Roblox’s inaugural economic and social impact report has revealed some impressive insights into the platform’s contributions to the U.S. GDP. Between 2017 and 2023, the sandbox platform says it generated $1.2 billion of economic value and the equivalent of 17,840 full-time jobs in the U.S. alone.
The stats: Those estimates include earnings that stemmed from the company’s DevEx program, which allows developers to exchange in-game Robux for real-life currency. Roblox paid out $741 million to its community of creators in 2023 alone, with 7,500 of 5.5 million U.S. creators earning at least $650 each.
That number is even higher when measured across the year-long period ending on June 30, 2024, during which Roblox says creator payouts reached $803 million (a year-over-year increase of 18%).
The takeaway: Roblox isn’t just a sandbox platform for game developers—it’s a major commercial hub in the United States. The tech company has made significant inroads in fields like ecommerce, advertising, and software over the last six years, with brands like Paris Hilton’s 11:11 and Warner Bros. throwing their weight behind in-game activations.
Roblox’s report also points to the strength of its community and the growth opportunities it offers emerging developers. According to the platform, 44% of survey respondents said they wouldn’t be developing any other interactive experiences if not for Roblox.
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HEADLINES IN BRIEF 📰
Streamer Ibai Llanos snagged the #1 spot on StreamElements’ list of Top 10 Twitch Streamers in July thanks to the success of his annual boxing event, La Velada del Año. (VentureBeat)
Bluesky has announced a series of “anti-toxicity features,” including detaching quote posts and hidden replies. (The Verge)
Parent company Automatic says it has no plans to “water down” Tumblr despite the blogging platform’s upcoming return to Wordpress. (TechRadar)
Meta has announced its decision to open its VR game, Horizon Worlds, to preteens who secure parental consent. (Engadget)
SEE YOU IN COURT
An appeals court says TikTok must face a lawsuit over the viral “blackout challenge”
The ruling: TikTok is going to court. According to a new ruling from a U.S. Appeals Court, the family of Nylah Anderson has the right to argue that TikTok’s recommendation algorithm exposed the 10-year-old to a “blackout challenge” that ultimately led to her death.
Nylah was one of several children who died in 2021 as a result of the challenge. Her mother, Tawainna Anderson, initially sued TikTok six months after the 10-year-old’s death, at which time the platform offered condolences and vowed to deplatform the blackout challenge. The original ruling on that case deemed TikTok immune from Anderson’s suit, in large part due to Section 230 of the Communications Decency Act of 1996—a “safe harbor” provision that has protected social media companies like YouTube from culpability for harmful content that is proliferated on their platforms.
The context: Now, however, some courts have started to rethink their interpretation of Section 230—and TikTok may be one of the first platforms to deal with the fallout. While judges have historically upheld the concept of a safe harbor provision, a July ruling from the U.S. Supreme Court stated that algorithmic recommendations represent an editorial choice, and therefore may not qualify for preexisting protections.
That classification could spell bad news for TikTok, since prosecutors in the Anderson case are arguing that the platform promoted the blackout challenge by serving it as a recommended video. U.S. Circuit Judge Patty Shwartz invoked a similar argument in her ruling, stating that the lawsuit could continue because TikTok’s algorithm falls outside Section 230’s proverbial safe harbor:
“TikTok makes choices about the content recommended and promoted to specific users, and by doing so, is engaged in its own first-party speech.”
OOPSIE DAISY
Twitch is updating its “drop-ins” feature after the tool threatened to unmask VTubers
The oversight: Twitch’s “drop-ins” feature is less than two weeks old, but it’s already weathered its very share of controversy. The tool—which allows streamers to “knock” on an active account to request a collab—was contentious from the start, with some streamers questioning whether it would be used to perpetrate abuse.
Then another concern rose to the forefront: the potential unmasking of VTubers. Initially, Twitch automatically turned on the webcams of partnered streamers when a drop-in was accepted. That aspect of the feature triggered concerns among virtual creators, who frequently keep their IRL identities a secret.
The response: Twitch’s reaction to the resulting outcry was swift: the platform quickly announced a change to drop-ins that will keep webcams off after a collab begins. Despite that rapid response, VTubers like Himura Senri and Vee replied to Twitch’s update announcement with pressing questions. At the top of the list: how could an oversight like automatic webcam activations slip through the cracks on a platform that hosts thousands of VTubers?
Going forward, Twitch aims to alleviate similar concerns about its ability to protect creators’ identities by making it possible for users to “control who can knock on your door”:
“You can set your preferences to All Streamers, Affiliates and Partners, Partners only, People you Follow or your Favorites list.”
The takeaway: Those measures are likely to soothe some of the worry caused by Twitch’s webcam snafu, but the controversy is still an important reminder of the steps platform must take to protect virtual creators. The recent debut of VTuber community app Holoplus and the harassment endured by masked creators like Dream demonstrate the lengths some viewers will go to to expose creators who choose not to share their IRL identities.
WATCH THIS 📺
Sabrina Carpenter has secured another spot in Billboard’s TikTok Top 10
The music video: The official music video for “Taste” dropped just last week, but the song is already sitting pretty at #9 on the TikTok Billboard Top 50 chart. That success marks the third time Sabrina Carpenter has taken over TikTok this summer, with bops like “Espresso” and “Please Please Please” having spawned their own viral trends.
The activation: TikTok isn’t missing out on Carpenter’s rising prominence. The platform teamed up with the pop star late last week to activate a “'Short 'N Sweet' in-app experience and exclusive effect to celebrate Sabrina Carpenter's new album.”
If you haven’t claimed Carpenter’s signature lipstick profile frame yet, you’ll probably want to start knocking out TikTok’s “five interactive tasks” before time runs out. (Already scored the themed frame? Check out this BTS look at the making of “Taste” instead.)
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Today's newsletter is from: Emily Burton, Drew Baldwin, Sam Gutelle, and Josh Cohen.