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Bluesky engagement seems to be punching way above its weight

While Meta pushes every Instagram user to Threads and X tries to shore up a disintegrating user base, the plucky indie social network is picking up steam because people actually seem to be using it.

Jon Keegan
11/29/24 10:38AM

It’s a crazy time for news publishers trying to share their stories on social media. Just a few years ago, Twitter and Facebook were the two big platforms to reach a huge audience of social-media users. Since Elon Musk’s purchase of Twitter and transformation into X, a mass migration of users has fled the platform, and the social-media landscape has splintered into pieces. Now, in addition to X, there is Meta’s Threads and Twitter spin-off Bluesky. But something interesting is happening with audience engagement on Bluesky.

Among this group of text-based platforms, X is still a juggernaut, with 535 million users overall. Both Threads and Bluesky have been adding over a million users per day recently, but Threads’ 275 million users dwarfs Bluesky’s 23 million.

Neglecting news

Meta has stepped back from positioning itself as a source for news, and across Instagram, Facebook, and Threads, news content does not get the same algorithmic boost that it used to. Elon Musk this week appeared to confirm that posts on X with links off the platform are deprioritized, which he referred to as “lazy linking”:

But over on Bluesky, news has no such algorithmic speed bump. Users have been noticing that while Bluesky’s audience is a mere sliver of X and Threads’ user bases, it has been delivering as much engagement as the bigger platforms, and in some cases eclipsing them. “Engagement” refers to how much users interact with any given piece of content, measured in likes, replies, or reposting a story.

At least anecdotally, medium-sized to large publishers have begun to report that internal data gives Bluesky a pretty remarkable edge.

bluesky-bostonglobe.com
@mkarolian.bsky.social

Let’s take a look at how engagement varies from platform to platform for some big news stories published by The New York Times, CNN, and The Wall Street Journal. But first, let’s look at the audience size for these publishers on each platform.

Engagement per million users

We picked three recent stories that were at least a day old, covered a few different topics, and were published by the official accounts for The New York Times, The Wall Street Journal, and CNN on X, Threads, and Bluesky.

To control for the vastly different size of the platforms, we assigned each story an “engagement per million users” score:

(Likes + reposts + replies) / (total number of users on platform / 1 million) = engagement per million users.

Of course, there are some limitations to this analysis. This experiment doesn’t control for the many, many variables that affect user-engagement numbers. For example, it doesn’t account for the weight of each type of engagement (a “like” is easier than a reply). Also, this does not account for the different political vibe of each platform, which could lead to certain stories getting very different reactions on different platforms. But when you plot out these scores, you do see much more engagement for the same stories on Bluesky.

Getting a consistent measure of active users on each platform is tricky. Using monthly active users as the devisor in this equation would be a more accurate way to measure this engagement rate, but we don’t have hard numbers for each platform. X says that it has 535 million “global monetizable monthly active users,” but Musk recently said that there are about 300 million daily active users. So even if that is accurate, X numbers might look close to Threads, as Meta says they have 275 million monthly active users.

Given that these are still generally similar orders of magnitude to overall user numbers, plugging in those estimates doesn’t meaningfully change what the chart shows: Bluesky sure looks hot right now.

Another possible explanation is that because Bluesky is new, it is probably just full of more fresh, engaged users. After all, X is carrying 18 years’ worth of users, and as a private company it doesn’t have to share as much detail about its users with regulators and investors.

News publishers are eager to find platforms that can get their stories in front of readers without fighting opaque algorithmic rules, so this increased engagement may lure more publishers to the platform.

With an eye on Bluesky’s skyrocketing growth, the other platforms may be taking notice. Just last week, Meta rolled out a flurry of features like allowing a non-algorithmic “followers” feed to be the default, and rolling out “starter packs,” which have been hugely popular on Bluesky.

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OpenAI and Microsoft reach agreement that moves OpenAI closer to for-profit status

In a joint statement, OpenAI and Microsoft announced a “non-binding memorandum of understanding” for their renegotiated $13 billion partnership, which was a source of recent tension between the two companies.

Settling the agreement is a requirement to clear the way for OpenAI to convert to a for-profit public benefit corporation, which it must do before a year-end deadline to secure a $20 billion investment from SoftBank.

OpenAI also announced that the controlling nonprofit arm would hold an equity stake in the PBC valued at $100 billion, which would make it “one of the most well-resourced philanthropic organizations in the world.”

The statement read:

“This recapitalization would also enable us to raise the capital required to accomplish our mission — and ensure that as OpenAI’s PBC grows, so will the nonprofit’s resources, allowing us to bring it to historic levels of community impact.”

Settling the agreement is a requirement to clear the way for OpenAI to convert to a for-profit public benefit corporation, which it must do before a year-end deadline to secure a $20 billion investment from SoftBank.

OpenAI also announced that the controlling nonprofit arm would hold an equity stake in the PBC valued at $100 billion, which would make it “one of the most well-resourced philanthropic organizations in the world.”

The statement read:

“This recapitalization would also enable us to raise the capital required to accomplish our mission — and ensure that as OpenAI’s PBC grows, so will the nonprofit’s resources, allowing us to bring it to historic levels of community impact.”

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Rani Molla
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BofA doesn’t expect Tesla’s ride-share service to have an impact on Uber or Lyft this year

Analysts at Bank of America Global Research compared Tesla’s new Bay Area ride-sharing service with its rivals and found that, for now, its not much competition for Uber and Lyft. “Tesla scale in SF is still small, and we dont expect impact on Uber/Lyft financial performance in 25,” they wrote.

Tesla is operating an unknown number of cars with drivers using supervised full self-driving in the Bay Area, and roughly 30 autonomous robotaxis in Austin. The company has allowed the public to download its Robotaxi app and join a waitlist, but it hasn’t said how many people have been let in off that waitlist.

While the analysts found that Tesla ride-shares are cheaper than traditional ride-share services like Uber and Lyft, the wait times are a lot longer (nine-minute wait times on average, when cars were available at all) and the process has more friction. They also said the “nature of [a] Tesla FSD ‘driver’ is slightly more aggressive than a Waymo,” the Google-owned company that’s currently operating 800 vehicles in the Bay Area.

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Oracle’s massive sales backlog is thanks to a $300 billion deal with OpenAI, WSJ reports

OpenAI has signed a massive deal to purchase $300 billion worth of cloud computing capacity from Oracle, according to a report from The Wall Street Journal.

The report notes that the five-year deal would be one of the largest cloud computing contracts ever signed, requiring 4.5 gigawatts of capacity.

The news is prompting shares to pare some of their massive gains, presumably because of concerns about counterparty and concentration risk.

Yesterday, Oracle shares skyrocketed as much as 30% in after-hours trading after the company forecast that it expects its cloud infrastructure business to see revenues climb to $144 billion by 2030.

Oracle shares were up as much as 43% on Wednesday.

It’s the second example in under a week of how much OpenAI’s cash burn and fundraising efforts are playing a starring role in the AI boom: the Financial Times reported that OpenAI is also the major new Broadcom customer that has placed $10 billion in orders.

Yesterday, Oracle shares skyrocketed as much as 30% in after-hours trading after the company forecast that it expects its cloud infrastructure business to see revenues climb to $144 billion by 2030.

Oracle shares were up as much as 43% on Wednesday.

It’s the second example in under a week of how much OpenAI’s cash burn and fundraising efforts are playing a starring role in the AI boom: the Financial Times reported that OpenAI is also the major new Broadcom customer that has placed $10 billion in orders.

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