In this week's wrapup, we will talk about the government's latest agricultural reforms, Softbank's earnings presentation, Spotify's exclusive deal with Joe Rogan, and Facebook Shops.
Agriculture will never be the same | Part 1 - Dismantling a Monopsony
On Monday, we talked about the problems with selling agricultural produce. Here's the thing- Indian farmers are not allowed to sell their produce to end consumers directly. They are expected to go through Mandis- designated market areas that are teeming with corrupt middlemen and opportunistic traders. This means farmers are routinely shortchanged- and reportedly, only get paid 20–25% of the end consumer price.
But now, the central government wants to change all this. They want to give farmers more choice. They want to ensure they get fair prices. They want to change the whole system.
But how are they going to do it? Read this piece to find out.
Agriculture will never be the same | Part 2 - Do Not Intervene
On Tuesday, we spoke about storage and warehousing infrastructure (for agriculture) in the country. The biggest problem with agriculture is that it is a seasonal activity. But you can't exactly let people starve in between harvests, can you? So you store the produce to match demand with supply and keep prices in check. However, the storage infrastructure in India is woefully inadequate, and it's leading to a whole lot of problems.
But the government has a plan. Find out what it is here.
Softbank's Mesmerising Presentation
On Wednesday, we decoded Softbank's earnings presentation. Now, analysing earnings presentations from investment companies is no easy task. A lot of news outlets have already covered the fact that Softbank’s Vision Fund — an investment fund that was supposed to propel dreams of the future, made losses to the tune of $17.7 billion last year. But they left out a lot of other "insightful" details.
Like what, you ask? Here's where you can find out.
The Joe Rogan Experience is going to Spotify
On Thursday, we talked about Spotify's latest $100 million deal. The music streaming platform has been spending big on podcasts lately. And a few days ago, they signed a $100 million deal with Joe Rogan for exclusive rights to his podcast. What's more, based on what they told investors last year, this won't be the last deal of its kind.
Want to know why podcasts are suddenly so integral to Spotify's strategy? Tune in here.
Facebook Shops has made landfall
On Friday, we discussed Facebook's plans to foray into e-commerce. Now it's no secret that the pandemic has affected Facebook's ad revenues. So they are desperately trying to figure out ways to make more money elsewhere.
Enter Facebook Shops. A virtual storefront for sellers to list their products on Instagram and Facebook. By the way, this time Facebook will also allow sellers to accept payment within the app.
But Facebook's model here is slightly different than traditional e-commerce marketplaces. Find out more here.
Well, that's it from us. Stay safe and have a good weekend!