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Canada's executives flock to emerging audio app Clubhouse, but long-term appeal unclear

Clubhouse popularity surges

When earnings season rolls around, Duncan Fulton spends days preparing for calls with media, analysts and investors, but hardly ever gets a chance to deliver his messages directly to the people who frequent his Tim Hortons coffee shops or Popeyes drive-thrus.

That changed in February when the chief corporate officer of Restaurant Brands International joined chief executive Jose Cil on Clubhouse — an emerging audio platform that gives anyone with an iPhone and an app the ability to host and access discussions on every topic imaginable.

"It's like reimagined talk radio with calls, but we are the producer," said Fulton, who hosted an "open kitchen" talk the day after RBI released its latest quarterly earnings.

"Our guests don't care about our adjusted EBITDA. They care about real stuff, about our food, our brands, and so we said, 'Why don't we use Clubhouse?'"

Fulton and Cil are the latest Canadian executives to turn to the app started by San Francisco serial entrepreneurs Paul Davidson and Rohan Seth last spring as a new way to host public conversations.

As COVID-19 spread throughout the globe and lockdowns kept millions of people at home, executives from top venture capital and tech firms began to jockey for access to the invite-only audio platform.

By the start of 2021, hundreds of business leaders and other Canadians had joined Clubhouse, which has offered increasing numbers of invites since late last year.

Members have been able to hear SpaceX CEO Elon Musk discuss whether he believes in aliens, Shopify executives Tobi Lutke and Harley Finkelstein wax poetic about entrepreneurship and Wattpad founder Allen Lau talk about his recent decision to sell the company.

"It's really democratizing corporate Canada and corporate America in a way," says Fulton, "because normally consumers wouldn't get this access to senior business leaders."

He pitched a Clubhouse talk to Cil after being introduced to the platform by Ottawa restaurateur Stephen Beckta, who got his invite from Finkelstein.

After dipping into music conversations, Fulton found he liked the exploratory nature of the platform and that moderators have control over who can speak and when.

"If you're a business leader that wants the safety of not taking questions, you can still go on there, share your views, and there's lots of people that are happy to not participate, not ask questions and just listen," he said.

Richard Lachman, a digital media professor at Ryerson University, agreed the platform can be helpful for executives wanting to manage their image, but said users will quickly drop out of conversations if a speaker is boring them or recognize when someone is too scripted.

Though executives go through media training, he said a few "embarrassments" will likely arise on the app if people don't know how to respond to "aggressive" questions or can't kick someone out of a discussion fast enough.

While the app doesn't overtly market itself as private, its invite-only nature has built a casual atmosphere, even as its userbase grows.

Clubhouse did not respond to a request for comment, but has a "rule" banning transcribing, recording or sharing personal information heard on the app. The company recently removed a bot it found sneaking into discussions to restream them to people without the app.

Still, a quick search on social media reveals dozens of recordings and quotes from the app available online.

Prominent venture capitalists faced criticism last year when audio leaked of them ridiculing New York Times journalist Taylor Lorenz and complaining that so-called cancel culture — sometimes described as withdrawing support for someone caught misbehaving or using outmoded language and expressions — had gone too far.

There have also been privacy complaints from users who opted not to give the app access to their contact lists, but say it is detecting their sign-ups and alerting friends whose numbers they have stored.

Once on the app, some users reported they stumbled upon misogyny and racism in discussions, despite rules against abuse and bullying and a feature to report problematic users.

"Some of the challenges (Clubhouse) is facing is that this content is very unmoderated and we are not in 2003 in (Facebook founder) Mark Zuckerberg's dorm room, pretending that anything we make we know where it'll go and we'll just let the market figure it out," said Lachman.

"We know what might happen. Online spaces can be incredibly toxic, they can be harsh and we know that things can be taken out context very quickly and easily duplicated on other platforms."

Despite the issues, Deepak Anand, chief executive of medical cannabis company Materia Ventures, joined the app. He hosts several pot discussions on it every week, but is careful in his approach.

He doesn't share anything on Clubhouse he wouldn't be comfortable with if it were leaked, but has seen several instances of people not realizing how public the app is.

"People generally like to share more than they normally would on the platform because it's easy to get carried away and it almost seems like you're having a conversation with friends," he said.

Among the positives, Anand saysClubhouse has helped him discover new ways to network while stuck at home during the pandemic and increased his social media followers.

He's unsure the app will continue to be his go-to because a competitor, Twitter Spaces, has caught his eye.

Tech Crunch reported that users who mined Twitter's coding have found Spaces, which is still in pilot mode, experimenting with ways to embed tweets into discussions, offer transcription for users with disabilities and enhance blocking capabilities.

Facebook is said to be developing a similar platform, but hasn't formally released any details.

The number of emerging audio apps and the flood of new Clubhouse users will make it even tougher for executives to stand out, Lachman predicted.

"This might have value right now, but in a year or two from now, that might get lost."



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