Insyte Weekly: Google Announces AI Features, Apple Music grows in the Electric Vehicle Market, Fintech Funding Trends, North Korean City to Welcome Tourists, and More

This was an interesting week in the business world. Find out how AI continues to disrupt industries, the latest fintech trends and how Google is challenging Apple with its upcoming features.

Media & Entertainment

Umar Shakir reported that Rivian, an Electric Vehicle company, is launching a software update that introduces built-in Apple Music streaming support, which includes spatial audio and Dolby Atmos. This update comes after Rivian rolled out its new Connect Plus data subscription service in June. While first-generation Rivian owners could stream music through apps like Spotify without additional costs, all R1T and R1S owners will now need to subscribe to Connect Plus to continue using media apps and the vehicle's Wi-Fi hotspot. Rivian is offering a two-month free trial of Connect Plus, after which it will cost $14.99 monthly or $149.99 annually. This move aligns with a broader trend among EV manufacturers, such as Tesla, which also requires a subscription for premium connectivity features, though neither company supports CarPlay or Android Auto.

As reported by Daniel Tencer, Tencent Music Entertainment (TME), China's largest music streaming service operator, is keeping pace with Spotify in subscriber growth, despite having roughly half the paying users. As of June 2024, TME reported 117 million paying subscribers across its platforms, including QQ Music, Kugou, Kuwo, and the karaoke app WeSing. In the first half of 2024, TME added 10.3 million subscribers, closely matching Spotify's 10 million new Premium users during the same period. TME’s average revenue per paying user (ARPPU) rose by 10.3% year-on-year to $1.47, though it remains lower than Spotify’s global ARPPU of $5.08, reflecting the different spending power of Chinese consumers. TME's music subscription revenue surged by 29.4% year-on-year to $515 million in Q2 2024, while total music service revenue reached $746 million. The company credits its growth to premium content, sound quality advancements, and personalized subscriber perks, such as its "Super VIP" service offering a comprehensive listening experience and exclusive benefits.

Edtech

Tapiwa Mutisi revealed that Schoolap, an ed-tech platform from the Democratic Republic of Congo, has expanded into Kenya, marking its first venture into English-speaking African countries. Established in 2017, Schoolap provides a comprehensive learning and school management ecosystem with features like digital curriculum management, interactive learning tools, and performance analytics. This strategic move into Kenya is aimed at addressing educational disparities and contributing to the country's tech-driven educational development. Pascal Kanik, Schoolap's CEO, expressed excitement about reaching a broader audience in the Anglophone market, while the Kenyan branch, led by Vanessa Ozoua Obura, will focus on integrating Schoolap's solutions into Kenya's education system.

Fintech

Carlos Juarez shared some interesting insights from CB Insights’ latest venture funding report. In Q2 2024, the fintech sector experienced a 19% increase in global capital raising, despite a 16% decline in deal volume, reflecting cautious investor sentiment. Late-stage companies saw renewed confidence, with late-stage deals making up 20% of global transactions, particularly in the payments and lending subsectors. Notable fundraising included two major "mega-rounds," Stripe’s $684 million Series I and AlphaSense’s $650 million Series F, contributing significantly to the sector's growth. The fintech industry also saw the addition of nine new unicorns, bringing the global total to 329, with the U.S. home to 171 of them. While the IPO market is recovering slowly, fintech companies completed 12 IPOs and two SPAC mergers worldwide in 2024. M&A activity slightly increased, with 312 deals globally, including 112 in the U.S. Subsector highlights include payments companies raising $3.4 billion, digital lending firms securing $1.5 billion, and insurtech companies raising $2.1 billion in 2024.

AI

Jennifer Elias reported that Google has introduced new AI features for Android devices, showcasing its Gemini AI assistant as part of its strategy to lead in consumer AI adoption ahead of Apple. The Gemini AI assistant, which allows natural conversation and can perform complex tasks by understanding user intent, is now available on numerous Android devices. Google aims to generate revenue through its Gemini AI subscription program, which is priced at $19.99 per month. The assistant can interact with various Google apps, offering functions like checking schedules, drafting emails, and creating images. Google plans to expand Gemini's capabilities by adding support for third-party extensions. This move highlights Google’s efforts to integrate advanced AI functionalities into everyday smartphone use, positioning itself ahead of Apple, which is still testing its AI system, Apple Intelligence, with a full release expected next year.

As reported by Ashley King, Kunlun Tech, a Chinese tech company and former investor in Musical.ly, has launched Melodio, an AI-powered music streaming platform. Melodio offers personalized music streams tailored to users' moods and scenarios through text prompts. Alongside Melodio, Kunlun introduced Mureka, an AI music creation platform allowing users to create and monetize AI-generated music. Both platforms are powered by Kunlun's advanced AI model, SkyMusic 2.0, which can generate endless music streams in specific styles. Kunlun Tech, valued at $4.8 billion, has a strong presence in AI, gaming, and social entertainment, with nearly 400 million monthly active users.

Tourism

As reported by Gavin Butler, North Korea is set to reopen the northern city of Samjiyon to foreign tourists in December, nearly five years after closing its borders due to the COVID-19 pandemic. Tour operators from China announced the move, with potential plans to reopen other locations like Pyongyang. The city of Samjiyon, known for its winter attractions and located near North Korea's tallest mountain, has been undergoing significant redevelopment, including new railways, hotels, and a converted military ski base. While North Korea aims to attract tourists from "friendly" nations, scepticism remains about whether the reopening will fully materialize by December. Currently, only Russian tourists have been allowed entry since early 2024, following the gradual lifting of border restrictions last year.

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