Artists complaining “are predominantly people who want to release music the way it used to be released,” he said, as albums or CDs. He says streaming is a different animal, requiring a “continuous dialogue” with fans. This makes label support, which can cost an artist their future, the only way to break through the noise.Įk hears the artist complaints but says those who are making a living off streaming don’t talk about it. Streaming brings in very little money, except for major acts - and even they complain. But the scaled tools put minor artists even further from profit than before. They said they were paying Spotify twice, once as a percentage of revenue to stream, a second time for promotion.
Labels had earlier complained loudly about the approach. Proof it works lies in a new deal with Universal Music Group, co-owned by Vivendi (OTCMKTS: VIVHY) of France and Tencent (OTCMKTS: TCEHY) of China, for tools like Spotify’s Marquee, which promotes new music as it’s launched.ġ0 Gaming Stocks That Will Power Through the New Normal
The Swedish startup is beating the giant cloud companies thanks to its focus on what CEO Daniel Ek calls the “two-sided marketplace.” The idea is to generate revenue not only from paid subscribers and advertisers, but from tools that let artists and labels reach those listeners. Monthly average users at the end of June stood at 299 million. The Two-Sided Marketplaceĭespite competition from Alphabet (NASDAQ: GOOG, NASDAQ: GOOGL), Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN), Spotify has gained a fat 35% of the streaming music business. Analysts had been expecting a small loss of 49 cents per share on $2.1 billion of revenue, and hoping for an even-smaller loss of 29 cents.īut in this case, patience may be rewarded. Spotify’s results were well short of expectations.
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