What We’re Reading

As discussed in prior letters, part of our sourcing model includes a top-down, thematic approach where we seek to understand trends, identify high-growth categories, and establish contextualizing frameworks based on the constantly-evolving consumer demographic and psychographic landscape. Practically, this means reading a lot. Today we are sharing three, longer-form articles that have reinforced our perspective and/or generated new considerations about the broader creator and consumer economies.

Hugo Amsellem’s “The Loneliness Economy: How can technology help us belong?”: Today, a shocking 60% of Americans are lonely – in part because technology has enabled hyper independence and reduced the need for real-life community. This trend was only amplified by COVID, which necessitated social isolation and buoyed products/services that support seclusion (e.g., Zoom). The world is unlikely to go backwards – to a time when people frequented religious institutions and worked in offices, for example – but perhaps technology can solve the problem it contributed to and reimagine how people find belonging (we think new-age communities should and will play a big role). Amsellem features many companies addressing this, and asserts that the Loneliness Economy should bear major, investable opportunities in years to come.

Mario Gabriele’s “A24: The Rise of a Cultural Conglomerate”: A24 has completely upended traditional media by approaching filmmaking like a startup. Its origins, efforts, and achievements are worth reading about in full, but we were most struck by how deeply technology sits at the core of its brand and operating principles. Unlike legacy studios, A24 understands social media, and uses it to build and cultivate an audience (at very little expense). In so doing, A24 not only achieves efficient customer acquisition, but also learns about – and can even shape – the preferences of its movies’ viewers. This strategy, coupled with its ability to find and support “true auteurs,” has allowed A24, a relative newcomer, to compete with major studios. And, interestingly, the respectful relationship it fosters with creators is a significant differentiator as other studios feud with writers and contemplate AI alternatives.

Common Sense Media’s report “Constant Companion: A Week in the Life of a Young Person's Smartphone Use”: The average teenager is “default online” – and the real world is simply a background state. According to the study, on a typical day, teens received a median of 237 notifications and picked up/checked their phone a median of 51 times (ranging from 2 to 498 times). This relationship with technology and, by extension, with others via social platforms is one that prior generations have difficulty comprehending. Teens have always sought out social connection and cultural context, but the internet (and their relationship with it) has enabled this to occur at an unprecedented speed and scale. This demographic reality is profound. The sheer number of inputs, interaction points, and feedback mechanisms have a deep impact on their behaviors, choices, and beliefs. Further, the relationships teens form (two-way and parasocially) amongst themselves, with creators, within communities, and even with brands, have massive implications for those who interact with and serve them.

Finally, we think it’s worth mentioning (but admittedly have not yet had a chance to read) Piper Sandler’s Semi-Annual Generation Z Survey released yesterday.