Since Jimmy Iovine came to Apple in 2014 to revivify Apple Music, the company spent $3 billion to buy Iovine and Dr. Dre’s streaming and headphones company, and doubled its subscriber base from 10 million to 20 million users by 2016. Each user pays a base fee of $10/month. The leap upward is impressive, but the total number of subscribers is still much less than the subscriber bases at Spotify, YouTube and Pandora, all of which offer free, ad-supported versions of their streaming services. Continue reading How Apple Music Differentiates Itself in a Competitive Market

Debuting a year ago, Stem has become successful distributing the music of independent artists to streaming services and divvying up royalties among the multiple collaborators that are typical in indie music. Up until Stem’s appearance, alternative distribution companies like TuneCore and CD Baby distributed indie music, but weren’t able to split royalties between artists and producers, leaving that onerous task to the main performer. Instead, Stem requires each collaborator to agree on percentage splits. Continue reading Stem’s Royalty Model Finds Popularity with Indie Music Scene

After three consecutive quarters of falling revenue, Apple is now experiencing strong demand for its iPhone 7, with a record number of iPhone shipments for the quarter ending December 2016. Despite that good news, the iPhone 7 failed to deliver the double-digit increase in sales that previous new iPhone models typically did in the first quarter after their debut. The iPhones, accounting for two-thirds of the company’s sales, pushed revenue up 3 percent to a record $78.4 billion. Apple’s service business is also booming. Continue reading Apple Notes iPhone Sales Increase, Looks to Expand Services

Sprint bought a one-third stake in Jay Z’s streaming music service Tidal, after beginning discussions in April 2015. Sprint has not offered details on how much it paid or what the partnership entails, although it says that its subscribers will now have access to Tidal content and that Tidal and its artists will create content specifically for them. Jay Z has stated that he and Sprint share the view of allowing artists to connect directly with fans. Sprint chief executive Marcelo Claure will join the Tidal board of directors. Continue reading Sprint Buys One-Third of Jay Z’s Troubled Tidal Music Service

Apple plans to focus on a new business in original TV shows and movies, say sources. The content would be available to subscribers of Apple Music, the company’s $10/month streaming music service, which continues to be an underdog to Spotify. In the wake of slowing iPhone and iPad sales, Apple has been casting about for a new source of revenue; recently, it has been in discussions with Hollywood producers to buy the rights to scripted TV programs and is trying to hire studio/network marketers to promote the content. Continue reading Apple Makes an Original Content Play to Beef Up Apple Music

When examining top apps based on revenue (outside of games), streaming services dominated 2016. Sensor Tower lists Spotify as the top earner, generating the most revenue across platforms, including Apple’s App Store and Google Play. Android chat app LINE took the second spot, followed by Netflix, Tinder, Pandora and HBO Now. Hulu ranked No. 7 on the App Store and No. 9 in overall revenue. “The list indicates that the trend toward cord cutting … is still going strong, as is the growth of subscription-based streaming of music,” reports TechCrunch. However, translating app success into profits remains a challenge for some (Pandora is laying off 7 percent of its workforce, despite touting more than 4.3 million subscribers). Continue reading Streaming Services Top Chart of Apps Earning Most Revenue

Apple is halving the amount it charges streaming services to sell video on its App Store, in response to widespread discontent among content partners. Earlier, Apple tried unsuccessfully to create its own live TV service, but instead released an app that relies on programs from streaming services including HBO, Hulu and Showtime. Apple is now cutting its share from 30 percent to 15 percent. Some non-video apps will also dip to 15 percent after the customer has been a subscriber for a year. Continue reading Apple Cuts Fees Charged to Streaming Services in App Store

Digital music services have a problem introducing new songs: Fans prefer music they’ve heard before, and can easily skip a song they don’t know. A radio station can promote a new song by repeatedly playing it, but up until now digital services haven’t had many tools to boost new song popularity. Now, Pandora has debuted a toolset that lets an artist introduce a new song with an audio message to fans. It worked for R&B singer Jill Scott, who was able to boost the popularity of a new song by 30 percent that way. Continue reading Pandora’s Promotional Tools Help Artists Market New Songs

Despite shifts in music consumption involving streaming services, Internet radio, digital downloads and more, many consumers are still purchasing CDs. However, the revenue does not always reach the artists and labels responsible for the music, since piracy is running rampant in the form of counterfeit CDs offered through online retailers such as Amazon. Counterfeits are becoming increasingly difficult to distinguish from the official versions. While CD sales represented a mere 13 percent of revenue for U.S. labels the first half of this year, they accounted for almost 40 percent of global revenue for the recording industry last year. Continue reading Music Industry Contends with Major Uptick in Counterfeit CDs

Amazon debuted its streaming music service Amazon Music Unlimited, which costs $7.99 per month for Prime members and $3.99 a month for consumers who’ve purchased its Echo speakers. The Echo deal is significantly less than the $9.99 charged by Amazon’s many, already-established competitors. Amazon is also playing up another way Echo distinguishes its offering: a user can ask Echo’s digital assistant Alexa to play a band’s “new song” without knowing the title, a group’s music from a specific decade or a song based solely on its lyrics. Continue reading Amazon Ties Digital Music Service to Echo Speaker and Alexa

Amazon plans to compete with the likes of Spotify and Apple Music when the company launches its own on-demand music service early next year. Some reports suggest the service may be called Amazon Music Unlimited, and would not come with the annual $99 Amazon Prime subscription, but would likely run a separate $10 per month. “The company will also launch its Echo-based music service, which will cost $5 a month, within the next few weeks,” reports The Verge. “That service will allow Echo owners to access Amazon’s music library on-demand just like the more expensive offering, but playback will be restricted to the smart assistant.” Continue reading Amazon to Take On Spotify and Apple with New Music Service

Amazon’s soon-to-debut music streaming service will reportedly be priced at about $5 per month, say sources. That price point is less than that charged by competitors Spotify and Apple Music, but Amazon’s end game is to increase sales of its voice-controlled Echo. With a focus on its digital assistant, Amazon most recently debuted a less expensive version, the $50 Echo Dot and is promoting the devices, and its virtual helper Alexa, in its physical bookstores and pop-up stores. Continue reading Amazon Aims to Bring Echo to More Homes with Music Service

Pandora unveiled Pandora Plus, replacing the 16-year old company’s original ad-free service. What’s different is that the company now licenses music from the major record labels, rather than using compulsory licenses from the government, with rates determined by federal judges. With the new version, users can replay or skip songs and listen offline. The monthly price remains $4.99. Out of Pandora’s nearly 80 million users, only 4 million are paying subscribers. An on-demand tier for $10/month will also debut by end of 2016. Continue reading Pandora Plus Makes Debut, Record Labels Experience Uptick

In its efforts to move more free-tier users to its $10/month subscription service, Spotify has redoubled its efforts to ink long-term licenses with major record labels. One potential option is that the labels would limit new releases to Spotify’s subscription tier in exchange for a lower percentage of subscription revenue. Another possibility is that Spotify will provide artists data and promotion in exchange for reduced royalty payments. Spotify is trying to settle the deals by end of 2016, say sources. Continue reading Spotify Focuses on Major Record Label Deals to Boost Profits

Sony Music, Universal Music and Merlin Network, which represents 20,000 independents, have agreed to license songs to Pandora for its two new music services. Pandora plans to offer the advertising-free Pandora Plus and an on-demand service similar to Spotify. The company is also still in talks with Warner Music in an attempt to ink a deal with this third-largest music rights holder. Pandora hopes to launch both of its new services by the end of 2016. As of June 30, Pandora says it has 78.1 million active listeners. Continue reading Sony, Universal Ink Deals with Pandora for Streaming Services