@alliecanal8193: Spotify not raising prices reveals ‘competitive weakness’: Analyst

[Editor Charlie sez: For the impact on streaming royalties, read the background on MusicTech.Solutions: The Elusive Obelus: Streaming’s Problem With Denominators]

Spotify’s (SPOT) decision not to raise prices on its U.S.-based premium subscription plan speaks volumes about the music streaming giant’s lack of pricing power. At least according to one bearish analyst.

“[It’s] a strategic play. It speaks to the relative competitive weakness of their business compared to these bigger firms that have bigger, larger platforms that bring a lot more to the table,” New Constructs CEO David Trainer told Yahoo Finance Live, referring to recent price hikes from both Apple Music (AAPL) and YouTube Premium (GOOGL)….

Spotify stock, which lost more than two-thirds of its value in 2022, surged more than 12% on Tuesday following the company’s report. The stock is down more than 65% compared to its February 2021 record high.

“There’s a disconnect here between valuation and the underlying economics and fundamentals of the business,” Trainer said. “[Spotify] is an unprofitable business that’s been burning through a lot of cash.”

Read the post on Yahoo! Finance

What Joe Rogan Wrought: Spotify’s Dawn Ostroff got paid 334 million stream exit package for “investing ahead of revenue”

@robarcand and @PoRican: Black Sheep Sue Universal Music Group Over Spotify Stock Sales

[Editor Charlie sez: The more interesting claim is against Spotify for inducing a breach and discriminating against all the artists who didn’t get stock, RSUs or something that represented the value of the stock. But the really interesting case is against the publishers for conspiring to keep streaming mechanicals at a “less than zero” rate while braying about how great a job they’d done in negotiating at the CRB with streaming and freezing the mechanical rate for physical over the same period that just happened to correspond to Spotify’s launch.]

Black Sheep have filed a class-action lawsuit against Universal Music Group, Rolling Stone reports and Pitchfork can confirm. The 1990s hip-hop duo allege that the label owes more than $750 million in royalties to numerous Universal artists due to an early “sweetheart” arrangement with Spotify, which allowed the streaming company to pay less in royalties in exchange for Spotify stock. The artists are suing Universal for breach of contract, breach of duty of good faith and fair dealing, and unjust enrichment.

In the lawsuit, plaintiffs Andres “Dres” Vargas Titus and William “Mista Lawnge” McLean allege that Universal “is withholding hundreds of millions of dollars in royalties” due to a “previously undisclosed” agreement with Spotify. This “sweetheart” arrangement allowed Spotify to license music from the label at a discounted rate “in exchange for Spotify stock and lower royalty payments.”

Read the post on Pitchfork

Will Sunlight Win at the Copyright Royalty Board in Big Tech’s Latest Credibility Debacle? — Music Technology Policy

The Copyright Royalty Judges stand up to the most dangerous corporations in the world and demand transparency in streaming mechanical rate “settlements.”

Will Sunlight Win at the Copyright Royalty Board in Big Tech’s Latest Credibility Debacle? — Music Technology Policy