Cue the singing angels. After interminable wrangling, the world’s biggest music label and the world’s biggest streaming service have agreed on new contract.
That Vivendi’s Universal Music Group and Spotify Ltd. overcame the acrimony bodes well for both.
The deal includes key compromises on both sides: Universal Music has agreed to accept a lower royalty rate for each song than it received under the old contract, but only if Spotify hits certain targets on increasing its paying subscriber base.
Neither company disclosed exact figures, but suffice it to say that if Spotify lures more customers it will pay less than the current rate of roughly 55 percent.
Read Article: Bloomberg Gadfly
Daniel Ek’s Brilliant Minds conference will return to Sweden on June 8—9 as part of Symposium Stockholm.
The event claims to gather the world’s “edgiest creators and purposeful leaders”. It was launched in 2015 by Ek and Ash Pournouri, then-manager of Avicii and CEO and founder of At Night Management (pictured).
Although select individuals ‘who are leaders in their fields’ received an invitation that year, those with less ‘brilliant minds’ could buy a ticket to the inaugural event for $2,900.
Read Article: Music Business Worldwide
It’s no surprise the music industry hasn’t provided a successful or revolutionary solution to the dissolving revenue streams and profit margins as consumers change their consumption patterns. Why would they be any different to the media and news companies, telco or transportation services (i.e. Uber) where users continue to go over the top direct to the utility they wish to consume?
Music streaming services today operate in a very noisy market that lacks differentiation. The formula to date has been relatively straight forward: secure licensing for songs, build a platform through which people can access songs, after which they are either served advertising during the content (lite version) or choose to pay a monthly fee (premium) to remove ads and have a clean content consumption experience.
Read Article: AdNews
Audio self-publishing service SoundCloud is at the centre of a rumour frenzy after reports surfaced that it has been struggling to raise the $100 million it needs to survive.
Investors value the brand in the region of $700 million – a $70 million cash injection from Twitter last year pegs it at the same amount – however the team will apparently listen to offers which exceed the total amount investment raised to date; a mere $250 million.
Although the economics of the business are murky for the moment, the brand does offer potential for organizations which want to play in the content arena. The team state SoundCloud has 175 million monthly unique users, though this number hasn’t been updated since 2014.
Read Article: Telecoms.com
Spotify — unlike Netflix, HBO, and dozens of others — handles the problem in a unique way that offers valuable features to users.
The music streaming service uses real-time technology to maintain a live, two-way connection to devices running the app, including laptops, phones, tablets, smart TVs, receivers, and more. This live connection ensures only one song is played at a given time by each Spotify account, regardless of how many people are logged in.
Imagine you’re jamming to AC/DC when your cousin decides to listen to Drake using the credentials for your account. Your music cuts off within milliseconds of your relative pressing play, and you’re notified of the remote access. When you press play to resume “Thunderstruck,” your cousin’s music stops and he gets the same message.
Read Article: Cloud Tech News
Dozens of Spotify workers may be forced to leave Sweden because of an error that could lead to authorities rejecting their work permit extension, according to a Swedish broadcaster.
The Local has previously reported on the long and winding road many foreign professionals face to get a work permit in Sweden – and the many hurdles they risk falling on along the way. Rising star IT developer Tayyab Shabab sparked debate earlier this year after he revealed he risks being deported because his previous employer forgot to take out occupational pension insurance for him.
Read Article: The Local
The way we listen to music is changing fast, and the business of music is struggling to keep up.
Constantly shifting business models affect performers and songwriters, producers and publishers, promoters and live music venues.
As streaming music has taken hold in the music ecosystem, a larger audience is listening to more music by more creators than ever.
But even as the music spreads fast and far, the business of music is not rewarding all contributors fairly.
Read Article: Forbes