This week, Apple and Spotify are going head to head over music streaming and profits after Spotify’s general counsel, Horacio Gutierrez, sent Apple a letter claiming Apple blocked the music-streaming company’s recent attempts to update its iOS app, “causing grave harm to Spotify and its customers,” Recode reports.
It’s a move designed to call attention to Spotify, but its complaint is one with broad ramifications. The crux of the issue is Apple’s billing system. If Spotify wants “to use the app to acquire new customers and sell subscriptions,” the company has to use Apple’s system at Apple’s price: an additional 30 percent fee for using the company’s billing system. (This is why a Spotify subscription purchased through the Apple store costs $13, rather than the usual $10. Those $3 cover Apple’s fees.)
Source: NY Mag
With few exceptions, the majority of streaming platform users tend to be largely in the under 35 set, but these services might do well to start courting an older demographic, with their deep pockets and streaming compatible tastes in music.
Spotify says Apple is making it harder for the streaming music company to compete by blocking a new version of its iPhone app.
In a letter sent this week to Apple’s top lawyer, Spotify says Apple is “causing grave harm to Spotify and its customers” by rejecting an update to Spotify’s iOS app.
The letter says Apple turned down a new version of the app while citing “business model rules” and demanded that Spotify use Apple’s billing system if “Spotify wants to use the app to acquire new customers and sell subscriptions.”
Just in time for the upcoming long Fourth of July weekend, Spotify has announced a new tool that will create a playlist specifically based on where you’re headed for the next few days. Simply called “Out Of Office,” the new site is fairly straightforward, and anybody with an account can set one up. With OOO, the Swedish streaming service creates a semi-custom playlist based on a number of factors, all of which are determined by having the user answer a few questions.
In the music industry, and perhaps all of tech, there may not be a better example of divergent paths than those of Pandora and Spotify.
Spotify’s ascent as the most used digital-music service in the world has paralleled a similar increase in its private market valuation. As of its most recent round of fundraising, Spotify’s valuation now sits at an impressive $8.5 billion. Then there’s Pandora. The online music pioneer’s market cap peaked at slightly more than $7.5 billion in early 2014, only to see its stock plummet since then by roughly 75%. Today, Pandora’s market capitalization stands as a mere fraction of Spotify’s most recent private market valuation. So why is Spotify more valuable than Pandora?
Source: The Motley Fool
Spotify wants brands to get intimate with its listeners, because it knows what they are feeling. Artists, meanwhile, can drop in anytime and check out the geographic popularity of their labors. In an interview with Beet.TV at the Cannes Lions festival, where Spotify had a major presence on several panels, Head of Sales for the Americas Liberty Carras Kelly cites the company’s Sponsored Playlists as the latest opportunity for audio engagement.
Data collected by Spotify provide clues as to listeners’ moods and what they’re doing—be it running, or cooking, working out or whatever.
Apple, Spotify and YouTube have all been grabbing the streaming headlines of late, albeit for different reasons. While these companies will continue to set the pace over the next couple of years (again, for different reasons) there is much more to the streaming market than these three. Here’s what three of the other main streaming contenders have been up to in recent weeks
Source: MIDiA Research
Spotify is no longer the disruptive force it once was now that so much is streamed to devices, meaning there’s greater pressure on its marketing to lift the value people place on music.
It might not sound like much is needed given the brand’s close bond to playlists but what made it great when it was fighting piracy may not be enough now. Apple, Google and Amazon are emerging as real threats to Spotify and unlike those brands it’s at risk of being indistinguishable from the competition.Apple has hardware. Google has advertising. Amazon e-commerce. Spotify’s sole business is music streaming, meaning its relative value is nil because it doesn’t own the content. It leaves the business in a precarious position, where a richer brand could attract a larger number of subscribers and offer some stability.
Source: The Drum
Pandora has just joined forces with the taxi annihilator Uber to bring drivers and passengers a another music listening option. Starting today, the program will be available for all Uber drivers in the countries in which Pandora operates (for now that remains the US, Australia and New Zealand). The service will also be ad-free for the first six months.
The formula for success in the Australian music industry is difficult to pin down, but you’ve got a good chance of achieving it if you get airplay by the nation’s youth broadcaster, Triple J. The desire for artists and bands to land on the radio station’s playlists has led to accusations of the “homogenisation” of Triple J’s sound. Some argue the station is now catering to safe, popular music rather that taking on risky acts, which is what the station was originally created for.
Adele’s new album 25 is finally heading to Spotify. This is great news if you’re a Spotify user who hasn’t caved and just gone out and bought it. The streaming service has announced 25 will be available in its entirety from midnight tonight for all users.And you’re not limited to just Spotify either, as you can also stream the album on Google Music as of midnight.
Source: Metro News
Radio is killing the music business.
Alta kachers and record labels pay fealty to this antiquated medium to their detriment. In an on demand society where the playlist is king the business keeps focusing on getting airplay and there are not enough slots and not enough people listening.
It’s like they’re coal miners fighting for market share in a world that’s become about natural gas, solar and wind.
The revolution has happened. It’s just that those with power refuse to acknowledge it. Sales are a dead metric, like counting the number of landlines in a mobile world, it’s all about streams. But how do you get people to stream if they don’t know what playlist to check out? Paul Simon put out a new album. Reviews say it’s good, I haven’t listened to it. Where do I start? Same deal with Tom Petty’s Mudcrutch. The acts make LPs in a singles world, get traditional publicity in an online social world, and then they blame the system when their new projects gain no traction.
Source: Lefsetz Letter