In case you were wondering what the value of songwriting is to Spotify, I think you can measure it pretty directly by the perks they hand out to their employees. I’m sure creators are glad to provide the value that takes care of these folks–while they scrape for every fraction of a penny in Spotify’s many lawsuits.
Employee Benefits and Perquisites
Additional benefits received by our Swedish employees, including Messrs. Ek, Söderström, and Norström, include private healthcare, accident insurance, life and long-term disability insurance, travel insurance, and parental leave. Additional benefits received by our U.S. employees, including Mr. McCarthy and Ms. Ostroff [who has a $1,000,000 base salary], include medical, dental, and vision benefits, medical, and dependent care flexible spending accounts, short-term and long-term disability insurance, basic life insurance coverage, and parental leave. These benefits are provided to our named executive officers on the same general terms as they are provided to all of our full-time employees in the applicable countries.
We design our employee benefits programs to be affordable and competitive in relation to the market, as well as compliant with applicable laws and practices. We adjust our employee benefits programs as needed based upon regular monitoring of applicable laws and practices in the competitive market.
We do not view perquisites or other personal benefits as a significant component of our executive compensation program.
And then there’s the cash and stock, like the “Chief Content Officer” who must have line responsibility for the licensing incompetence and goal post moving:
In case you missed it, the creator’s loss is Spotify’s gain. No, today is different than usual, because this time Spotify’s gain is not just tied to the misery of artists and songwriters, it’s actually tied to the whole world. According to TechCrunch:
The coronavirus may be decimating some corners of the economy, but the impact on the digital music, as evidenced by the world’s biggest music streaming company, appears to be minimal. Today Spotify reported its earnings for Q1 with revenues of €1.848 billion ($2 billion at today’s rates) and an inching into a positive net income of $1 million. Monthly active users (not total subscribers) now stand at 286 million, with paid (premium) users at 130 million and ad-supported monthly active users at 163 million. Ad-supported users are growing at a slightly higher rate at the moment, at 32% versus 31%, Spotify said.
So far today, SPOT is up $16 a share, which means Daniel Ek made roughly $656,000,000 today alone. And that doesn’t count the warrants.
So the bubbly is flowing at World Trade Center or wherever the Spotify elites are hiding out.
Just like at your house, right?
Do they care about your problems?
[Apple gets it–it’s about the reporting…it’s time for Spotify to raise prices and dump the free service. Netflix has done it a bunch.]
The news business hasn’t shown so much promise in years—and not because of the specifics of Apple’s offering or anyone else’s. Leading publications like The Journal, The Times, and The Post all already have robust subscription offerings. Whether or not they enhance their business models by participating with Apple is neither here nor there from an existential perspective. The point is the industry is surviving, maybe even thriving, by charging its customers for their high-quality product. Finally.
Read the post on The Data Sheet from Fortune and subscribe here
It’s becoming extremely difficult for musicians to make a living these days —even successful and award-winning bands like Mastodon.
Mastodon’s guitarist, Bill Kelliher, recently gave an interview on the music podcast “Let There Be Talk,” where he explained how streaming services are killing music as we know it. And potentially putting promising bands out of business.
Kelliher puts a lot of blame on popular music streaming services such as Apple Music and Spotify, who pay artists way too little money. In Kelliher’s estimation, if this doesn’t change, a number of ‘successful’ artists and bands will have to leave the business.
Perhaps most shockingly, Kelliher further says that bands like his can no longer afford to make records.
Read the post by Marsha Silva on Digital Music News
ON MARCH 2, SPOTIFY ANNOUNCED the most Spotify thing imaginable: The Smirnoff Equalizer, a brand partnership in the form of a woke algorithmic discovery tool. Together, Spotify and Smirnoff claimed that the app would analyze users’ listening habits and “equalize” the gender ratio of their listening experience. Applying a binary understanding of gender, the Equalizer would quantify the user’s past six months of streaming, display the percentage of male-versus-female artists in their history, and provide them with a personalized, more “balanced” playlist. The Smirnoff Equalizer will be live through this summer, available for Spotify users of a legal drinking age in the United States and five additional countries, which should serve as reminder enough: this tool is meant to sell vodka.
Read the post on The Baffler