Last year when Spotify took on $1 billion in debt, we reported that it did so under terms that forced rate increases if it failed to IPO. Now, those terms could force Spotify to IPO quickly, which leaves the music industry in a strong negotiating position.
They still haven’t paid songwriters…
The traditional music business is in danger of being hit by a ‘brain drain’ as streaming services raid top executive talent.
The latest high-profile figure to cross the divide is former Def Jam and Warner boss Lyor Cohen, whose appointment at YouTube has set industry tongues wagging worldwide.
He’s not the only one: we hear Troy Carter at Spotify has just swooped for his former Atom Factory management colleague Sam Berger.
The smart money is on at least one of these vacancies being filled by a senior figure from a record company. Any guesses?
When you scan back over the past few years, a very definite pattern becomes clear: a long line of senior label execs have been poached by the likes of Spotify, Apple Musicand YouTube – and it’s a trend which is increasing in intensity.
Here, MBW presents a extensive run-down of who’s gone where.
It’s a list which poses two key questions:
(i) How worse off is the ‘traditional’ music rights business due to the loss of this executive talent to ‘the other side’?; and (ii) Who’ll be next…?
Another insightful post by the author of Free Ride! We’re looking forward to Mr. Levine turning his attention to the racketeering at Facebook.
As Spotify begins to prepare for an IPO, which sources say the company is planning for late 2017, the relationship between the Swedish streaming giant and its trifecta of major-label frenemies (Universal Music Group, Sony Music Entertainment and Warner Music Group) is going through some drama.
Finding compromise is more important than ever for both sides. Spotify needs the majors’ vast catalogs and without long-term deals in place, it would be hard for the company to go public — which it essentially has to do in order to satisfy the terms of a financing deal.
What do you expect from people who steal from songwriters? Where is the Justice Department now?
The past 72 hours have been especially fun in the world of streaming exclusives.
On Friday, Bloomberg ran a story which accused Spotify of actively ‘burying’ the promotion of stars who have windowed their music on Apple Music or Tidal.
Spotify has done so, said the report, by excluding artists and tracks from its highly influential playlists, in addition to demoting them from search results.
The Swedish service has now hit back at the article, calling it “unequivocally false”.
Well, to be precise, Spotify says that the allegation of it burying search for Apple/Tidal-friendly artists is “unequivocally false“.
That’s because the other bit – the bit that suggests Spotify is blackballing these artists on its top playlists – is completely true.
There’s no debate here. We’re telling you, it’s happening.
Just ask Katy Perry…
Perry’s big comeback single – her first for two years – is called Rise.
You may or may not have heard it. That’s kind of the point.
Newly married Spotify Chief Executive Daniel Ek is coming around to the idea of compromise.
The streaming leader is discussing making some new music available only to paying subscribers in hopes of ending a months-long impasse with the major record companies, The Post has learned.
The recent change of heart for Ek — who said “I do” to Sofia Levander in lavish nuptials over the weekend in Italy’s Lake Como — stems from a desire to make Wall Street happy, sources said.
As part of its negotiations, Spotify wants to lower its revenue split and make its finances more attractive to potential investors.
Spotify wants to hand over less than 50 percent of its revenue to the labels, sources say. Right now, it pays them as much as 58 percent of revenue.
“There are two things being discussed — windowing and rates. It’s a bit of ‘we’ll compromise if you compromise,’ ” said a source familiar with talks. “They’re tech people and they want to get rich.”
Another example of Spotify’s market power run amok.
Taking the [denial] from Spotify at face value, the company is incredibly clear about not suppressing tracks from artists that signed exclusives with other streaming services deeper in search results.
That said, a representative of a singer-songwriter told Bloomberg that the artist turned down an appearance on an Apple Music show because of fears they would “lose promotion from Spotify.” This is not about suppressing search results, this is about promoting music differently on the Spotify platform as a direct result of exclusives signed with streaming services like Apple Music.
Meet the new boss, worse than the old boss. Looks like Spotify uses its dominant market power to destroy careers, but you can forget the anti-artist Obama Justice Department doing anything about it as long as Clintonista Jonathan Prince is at Spotify.
An escalating battle between Apple Inc. and Spotify Ltd. is leaving some musicians caught in the crossfire.
Spotify has been retaliating against musicians who introduce new material exclusively on rival Apple Music by making their songs harder to find, according to people familiar with the strategy. Artists who have given Apple exclusive access to new music have been told they won’t be able to get their tracks on featured playlists once the songs become available on Spotify, said the people, who declined to be identified discussing the steps. Those artists have also found their songs buried in the search rankings of Spotify, the world’s largest music-streaming service, the people said. Spotify said it doesn’t alter search rankings.
Spotify has been using such practices for about a year, one of the people said, though others said the efforts have escalated over the past few months. Artists who have given exclusives to Tidal, the streaming service run by Jay Z, have also been retaliated against, the person said, declining to identify specific musicians.