"What if that metal fan only listened to Metallica, yet still 10% of that subscriber’s revenue went to Katy Perry?" It is not a hypothetical question. It's actually how payments to rightsholders are calculated by Spotify, Apple Music and all other music streamers. But Mark Mulligan discovered that rival Deezer is exploring a radical shift that some believe would divide revenue more fairly.
After his song "Cold Little Heart" earned a prominent spot on HBO's new Big Little Lies, Michael Kiwanuka saw a massive jump in his music's popularity. Here he discusses how TV placement can help artists whose music may not fit with traditional radio, and the important relationship between a well chosen song and the show/film which is supports.
Music fans are showing a growing willingness to actually pay for music, and that is helping to drive the current growth in the recorded music industry. In fact, the value of those fans grew 11% last year driven by tens of millions of $10 per month on-demand subscriptions, according to MusicWatch’s Annual Music Study.
Warner Music Group has hired Michael Drexler as VP, Digital Strategy & Corporate Development and Allan Coye as VP, Digital Strategy & Business Development. Based in New York, both will report to Ole Obermann, WMG’s Chief Digital Officer & EVP, Business Development; and are his first hires since he joining the company late last year.
Last week, Universal Music Group and Spotify announced a deal would soon be taking place between the two companies. One component of the deal gives UMG the option of withholding certain content from Spotify's free users for a period, raising some interesting questions surrounding windowed streaming releases.
With yesterday's announcement that Spotify and Universal Music Group had struck a multi-year licensing deal came to revelations: 1) the music streamer would pay lower streaming rates IF it delivered specific higher revenue targets and 2) some new releases would not to available to free users for two weeks in an effort to encourage them to become paid subscribers.
[UPDATED] With today's news of a Spotify, Universal Music Group deal that includes two week windows that make some album releases available only to paid subscribers, this article which we published yesterday is all the more poignant. In it, Ross Pruden, points out that windowing and other exclusives encourage Spotify's 50+ million free users to become music pirates.