Spotify Reaches 108M Subs, But Revenue Per User Drops

Top streaming music service Spotify announced that it added 8 million subscribers during the most recent quarter ending in June, bringing its total to 108 million paying subscribers and 232 million monthly active users (paying and non-paying). The subscriber tally includes those who signed up for Spotify’s 30-day free trial. The company also recently launched its biannual campaign that offers the premium service for only $1. As a result, its average revenue per user dropped to $5.42, which is a 1 percent reduction compared to the previous quarter. Continue reading Spotify Reaches 108M Subs, But Revenue Per User Drops

Snap Inc. Hoping to Expand Use of Music in Snapchat App

As Snap faces increased pressure from competitors such as Facebook’s Instagram and ByteDance’s TikTok, the company is reportedly talking with music labels for broader licensing agreements to allow increased use of music via the popular Snapchat app. According to people familiar with the matter, Snap is in discussions with Sony Music Entertainment, Universal Music Group and Warner Music Group. Snap is not looking to launch the next Spotify, but rather expand the way its users can integrate music into Snaps and social media applications. Continue reading Snap Inc. Hoping to Expand Use of Music in Snapchat App

Spotify at 100 Million Paid Subscribers, Expands Podcasting

Music streaming giant Spotify exceeded analysts’ quarterly expectations when it announced it hit the coveted 100 million paid subscriber mark, a first for any music streaming company. That news, combined with a growing podcast business, enabled the company to narrow its loss in the most recent quarter, during which Spotify acquired podcast companies Gimlet Media and Anchor, as well as announced plans to acquire podcast producer Parcast. Spotify plans to spend as much as $500 million on non-music deals this year.

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Amazon and Google Offering Ad-Supported Music Services

Spotify has new competition. Amazon just introduced an ad-supported version of Amazon Music available in the U.S. via Alexa devices. To jumpstart the service, Amazon has reportedly offered to pay some record labels per stream for music licenses, separate from ad sales. The catalog is limited, but listeners can access some of Amazon Music’s “top playlists.” Google also announced that YouTube Music will be free on Google Home smart speakers and Google Assistant devices in the U.S., Canada, Mexico and parts of Europe. Continue reading Amazon and Google Offering Ad-Supported Music Services

Spotify Licensing Deals Could Have Impact on Music Industry

Stockholm-based Spotify is making a move that could challenge traditional royalty models and the major record labels that have long led the music industry. Spotify has struck licensing deals directly with a handful of independent artists over the last year, giving the artists a larger monetary cut and ownership of their recordings. The financial details include advance payments of tens or hundreds of thousands of dollars, according to sources, considered “modest” in the music industry. Spotify has released few details about the deals. Continue reading Spotify Licensing Deals Could Have Impact on Music Industry

Instagram Users Can Feature Popular Music in Their Stories

Instagram Stories, which currently touts 400 million daily users, now offers a new feature that enables users to add clips of popular songs to their photos and videos. The feature is initially available to Android and iOS users in six countries (including the U.S.), with plans to roll out to additional regions soon. Facebook’s recent deals with major and indie music labels will enable Instagram users to select up to 15 seconds of music from the likes of Bruno Mars, Cardi B, Demi Lovato and Maroon 5 to create soundtracks for each post. Continue reading Instagram Users Can Feature Popular Music in Their Stories

Spotify Offers Direct Licensing Deals to Managers, Indie Acts

Spotify is offering some managers and indie music acts a new arrangement: Management firms can receive “several hundred thousand dollars” as an advance fee for licensing “a certain number of tracks” of their indie artists directly to Spotify. In addition, in some cases, the managers and acts will earn 50 percent of the revenue of those songs per stream. In comparison, major-label artists and their management teams usually get 20 percent to 50 percent of the label’s share and don’t own their master recordings. Continue reading Spotify Offers Direct Licensing Deals to Managers, Indie Acts

Facebook to Help Users Feature Copyrighted Music in Videos

Facebook has struck deals with the major record labels and numerous indies so that users can upload videos featuring copyrighted background music without the fear of that content being taken down. Facebook plans to pay artists and labels when tracks are used, although rates have yet to be disclosed and it is unclear whether compensation would be based on video uploads or views. The social platform is not yet introducing a tool for adding a copyrighted song to a video, but Facebook-owned Instagram recently prototyped such a feature (Instagram is also prepping a feature that would allow for long-form video). Continue reading Facebook to Help Users Feature Copyrighted Music in Videos

Spotify Tweaks Contentious Policy on Hate Content, Conduct

Spotify introduced a “Hate Content & Hateful Conduct” policy in May and, due to the dismay and confusion it sparked, the company is changing its policy, specifically canceling the portion related to the decision to remove artists from playlists if they were involved in “controversies.” Kendrick Lamar’s record label felt so strongly about the policy that it threatened to remove his music from Spotify, and company chief executive Daniel Ek was forced to admit the company could have done a better job in explaining the policy. Continue reading Spotify Tweaks Contentious Policy on Hate Content, Conduct

Spotify Readies New Free Version, Acquires Licensing Platform

According to sources, Spotify is working on a version of its free music service that would be easier to use on mobile phones. The rationale is likely that, after just going public, the Stockholm-based company now needs to grow its user base. The free service is also a springboard for the company’s paid service, which, although services less than half of its user base, generated 90 percent of last year’s 4.09 billion euro revenue. By the end of 2017, Spotify had 157 million users, of which 71 million were paid subscribers. Continue reading Spotify Readies New Free Version, Acquires Licensing Platform

Streaming Helps Indie Record Labels Rock Overseas Markets

Thanks to streaming services like Spotify, which works with more than 20,000 independent labels in 53 countries, independent record labels are experiencing an international revenue surge that would have been unimaginable years ago. Whereas foreign music markets used to be assessable only via local companies or major labels with global marketing capacities and strategies, worldwide digital streaming services have changed the music business landscape in a short period of time, changing the way independent labels make money.

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Songwriters, Music Publishers Get More in Streaming Royalties

The National Music Publishers’ Association raised music streaming royalties for songwriters and music publishers by more than 40 percent in an attempt to resolve a conflict between them and the streaming services, including those from Amazon, Apple, Google, Pandora and Spotify. The Copyright Royalty Board now requires those services to pay the aggrieved parties 15.1 percent of their revenue, up from a previous 10.5 percent. Songwriters and music publishers will now receive $1 for every $3.82 the recording labels receive. Continue reading Songwriters, Music Publishers Get More in Streaming Royalties

Spotify Adds Content to Compete With Radio, YouTube, Apple

Popular streaming music service Spotify plans to take on radio and podcasts from Apple and others by introducing news and political coverage to its content offerings. Spotify’s new Spotlight feature will include programming from partners such as BuzzFeed and Refinery29. BuzzFeed, for example, will provide daily newscasts that run four to seven minutes in duration. Spotify’s 70 million users already have access to music and new video and podcast offerings; Spotlight will add news, politics, pop culture and sports coverage. The strategy could position Spotify as a competitor to YouTube and Apple. Continue reading Spotify Adds Content to Compete With Radio, YouTube, Apple

YouTube Readies Subscription-Based Music Streaming Service

According to sources, YouTube will debut a paid music service in March, marking the third attempt by parent company Alphabet to compete with Spotify and Apple. Warner Music Group has reportedly already signed on to the new effort and discussions are underway with the other two major record labels, Sony Music Entertainment and Universal Music Group, as well as Merlin, an alliance of independent labels. Apple and Spotify’s paid streaming music services have helped the music business grow after two decades of decline. Continue reading YouTube Readies Subscription-Based Music Streaming Service

Paid Subs for Streaming Music Services Top 30 Million in U.S.

The music business is experiencing significant growth, thanks in large part to the increasing popularity of streaming services. According to RIAA’s midyear report, leading services such as Spotify and Apple Music currently have 30.4 million paid subscribers in the U.S. (up from 20.2 million the previous year). Streaming services are now responsible for 62 percent of total industry revenue, followed by 19 percent for digital downloads, 16 percent for physical sales, and 3 percent for synch rights. Continue reading Paid Subs for Streaming Music Services Top 30 Million in U.S.

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