As Spotify Technology SA prepares to go public, co-founder and chief executive officer Daniel Ek has some convincing to do. Not necessarily about the company’s numbers, which are impressive (70 million paying subscribers, for starters), but about the potential for growth and revenue. On the one hand, with Spotify’s help, the music business has seen three years of global growth after 15 years of decline — but on the other hand, Spotify isn’t making money, having to contend with music-rights holders collecting over 75 cents per dollar.

Continue reading Spotify Promotes Potential Growth as It Prepares to Go Public

Thanks to streaming services like Spotify, which works with more than 20,000 independent labels in 53 countries, independent record labels are experiencing an international revenue surge that would have been unimaginable years ago. Whereas foreign music markets used to be assessable only via local companies or major labels with global marketing capacities and strategies, worldwide digital streaming services have changed the music business landscape in a short period of time, changing the way independent labels make money.

Continue reading Streaming Helps Indie Record Labels Rock Overseas Markets

Musical artists and music organizations are banding together in an effort to pass copyright legislation on content recorded before February 17, 1972. A coalition of 213 artists and eight music organizations has joined forces to ask Congress to pass the “CLASSICS Act” (H.R. 3301/S. 2393), which would cover such older recordings, resulting in increased royalties for this older era of musical content. The coalition placed a two-page ad in Politico on February 14 that made their case for the legislation. Continue reading Musicians and Music Groups Push for Updated Copyright Law

In what it calls its “best and final” offer, Broadcom raised its takeover bid yesterday for chipmaker Qualcomm from about $70 a share to $82 a share, or about $121 billion. The new offer comes a month before Qualcomm’s next shareholder meeting. A takeover would result in a company whose products would be used in most smartphones worldwide. However, “Qualcomm’s leadership fiercely opposes” the acquisition, reports The New York Times, “while analysts have said that even if shareholders approved the deal, it could be rejected on antitrust grounds.” Continue reading Broadcom Raises Stakes in Takeover Bid for Rival Qualcomm

The National Music Publishers’ Association raised music streaming royalties for songwriters and music publishers by more than 40 percent in an attempt to resolve a conflict between them and the streaming services, including those from Amazon, Apple, Google, Pandora and Spotify. The Copyright Royalty Board now requires those services to pay the aggrieved parties 15.1 percent of their revenue, up from a previous 10.5 percent. Songwriters and music publishers will now receive $1 for every $3.82 the recording labels receive. Continue reading Songwriters, Music Publishers Get More in Streaming Royalties

YouTube debuted plans to streamline its service by consolidating artists’ channels. In doing so, it will combine separate channels for live albums, music videos, live performances, single songs and complete albums to a single site. Among YouTube’s many music partners, the new plan will especially impact Vevo channels where Official Artist Channels, marked with a musical note, will be the first thing a user sees in search. Channels can still be accessed with YouTube’s advanced channel filter in search. Continue reading YouTube Introduces Plan to Unify Artists’ Disparate Channels

Popular streaming music service Spotify plans to take on radio and podcasts from Apple and others by introducing news and political coverage to its content offerings. Spotify’s new Spotlight feature will include programming from partners such as BuzzFeed and Refinery29. BuzzFeed, for example, will provide daily newscasts that run four to seven minutes in duration. Spotify’s 70 million users already have access to music and new video and podcast offerings; Spotlight will add news, politics, pop culture and sports coverage. The strategy could position Spotify as a competitor to YouTube and Apple. Continue reading Spotify Adds Content to Compete With Radio, YouTube, Apple

Wixen Music Publishing filed a $1.6 billion copyright lawsuit in a California federal court against popular music streamer Spotify. Wixen claims that the Stockholm-based service used thousands of songs — including those by the Doors, Tom Petty and Neil Young — without a direct or compulsory license and without compensating the music publisher. According to Reuters: “Wixen also alleged that Spotify outsourced its work to a third party, licensing and royalty services provider the Harry Fox Agency, which was ‘ill-equipped to obtain all the necessary mechanical licenses.’” Spotify, which has grown in value to $19 billion, recently filed IPO documents with the SEC. Continue reading Music Publisher Files $1.6 Billion Copyright Suit Against Spotify

Vivendi’s Universal Music Group, the world’s largest record company, has licensed its music catalog to Facebook. The deal, which focuses on the music in user-generated videos, covers songs that will be used in the background on videos and so-called social experiences on Facebook, Instagram, Messenger and Oculus. For Facebook, the deal is aimed at encouraging users to post more videos, key to the company’s current video-centric strategy. A day before this deal was struck, Universal also reached an agreement with YouTube. Continue reading Facebook, Universal Music Ink Licensing Deal for User Videos

After two years of negotiations, YouTube is finally inking a long-term pact with Universal Music Group and Sony Music Entertainment, the top two music labels. The new agreement, say the labels, establishes royalty rates for rights holders of professional music videos and user-loaded clips, offers stronger policing of uploads of copyrighted songs, and gives artists more money and flexibility. The deal is also a precursor to YouTube launching a paid music service early in 2018. Continue reading YouTube Signs Agreement With Universal, Sony Music Labels

Qualcomm turned down Broadcom’s offer to acquire the company for $105 billion, with its board stating that the offer both significantly undervalues the company and could be beset by regulatory issues. Broadcom, which will seek other avenues to make the deal, says it is committed to the acquisition. Should Broadcom acquire Qualcomm, the merger of these two titans of chip manufacturing would create a single behemoth controlling chip production for everything from consumer devices to data centers. Continue reading Qualcomm Rejects Broadcom’s Offer, But Deal Is Still In Play

Taylor Swift is releasing her sixth album, “Reputation,” on CD, rather than any streaming service, say sources, who suggest that the streaming “blackout” could last one or two weeks. Swift and her label Big Machine Records have declined to be more specific, but an initial streaming blackout would be in line with Swift’s last album, “1989,” which when it was released in 2014 took seven months to reach streaming services, including Spotify, Apple Music and others. Now, “1989” streaming sales dominate over downloads and CDs. Continue reading Taylor Swift’s Album Debuts on CD, Not Streaming Services

Broadcom has made a move to acquire rival Qualcomm, the San Diego-based chipmaker making headlines this year due to its ongoing legal battle with its biggest customer, Apple. In January, Apple filed a federal lawsuit against Qualcomm, claiming the company unfairly blocks rivals and charges steep patent royalties. Qualcomm is now suing Apple for failing to abide by its software license. Broadcom’s unsolicited $103-billion offer marks the largest attempted takeover for the tech industry and is expected to face regulatory hurdles. Continue reading Broadcom Offers $103 Billion in Unsolicited Bid for Qualcomm

In the midst of its legal battle with Qualcomm, Apple is designing next year’s products with modem chips from Intel or MediaTek. According to sources, Apple has taken this step because San Diego-based Qualcomm has not supplied the software necessary to test its chips in the Silicon Valley company’s iPhone and iPad prototypes. However, Qualcomm argues this point and is now suing Apple for failing to abide by the terms of its software license. Apple filed a federal suit against Qualcomm in January, claiming it unfairly blocks rivals and charges excessively steep patent royalties. Continue reading Apple Looks to Other Chip Suppliers Amid Qualcomm Dispute

Apple inked a deal with Warner Music Group, its first with a major label since it launched Apple Music, its streaming music service. According to insiders, Warner will provide Apple with an extensive song catalog for both iTunes and Apple Music. Sources say that Apple will pay a smaller percentage of sales from Apple Music subscribers than it did under its first deal. On-demand streaming is now the dominant model for music sales, and the technology companies and music publishers are creating a framework for doing business. Continue reading Apple Inks Deal With Warner Music Group, Sony Pact Next