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seth

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Posts: 5,680 Member Since:26/01/2011

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Apr 12 17 9:48 AM

From their lips, as it were, to God's ear! The re-evaluation of royalty rates has been anticipated for a long time and everyone knows it would change the profitability of the streaming companies. What they don't say in the article is that the labels are deeply conflicted between their royalties and their stock ownership in the streaming companies - they were bought off by Spotify with stock. If Spotify becomes less profitable the labels will be back on our side with respect to royalties.

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soapfoot

Ruby Baby

Posts: 7,512 Member Since:04/02/2011

#3 [url]

Apr 12 17 10:08 AM

seth wrote:
From their lips, as it were, to God's ear! The re-evaluation of royalty rates has been anticipated for a long time and everyone knows it would change the profitability of the streaming companies. What they don't say in the article is that the labels are deeply conflicted between their royalties and their stock ownership in the streaming companies - they were bought off by Spotify with stock. If Spotify becomes less profitable the labels will be back on our side with respect to royalties.

Spotify, if my information is correct, has yet to turn a profit. Like, not even close, not even in a single quarter, to my knowledge.

The whole thing seems to be leading up to a big IPO. Or at least that's my hunch. Perhaps this is a sign that they're figuring out that they're going to need to figure out how to turn a profit sooner or later, otherwise it's all just a shell game.

brad allen williams

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dr funk

Platinum Blonde

Posts: 1,643 Member Since:24/12/2011

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Apr 12 17 5:01 PM

There was a great quote from Erlich Bachman in HBO's "Silicon Valley", which I can't remember, but to paraphrase: as long as a company hasn't yet turned a profit, it has huge potential for investors. The moment it turns a (probably poor) profit, the buzz is gone.

I immediately thought of Spotify while I was watching that episode.

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zmix

Aqua Marine

Posts: 4,285 Member Since:20/01/2011

#5 [url]

Apr 12 17 8:34 PM

dr funk wrote:
There was a great quote from Erlich Bachman in HBO's "Silicon Valley", which I can't remember, but to paraphrase: as long as a company hasn't yet turned a profit, it has huge potential for investors. The moment it turns a (probably poor) profit, the buzz is gone.

I immediately thought of Spotify while I was watching that episode.
It was this scene:



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bob olhsson

Aqua Marine

Posts: 3,352 Member Since:25/01/2011

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Apr 15 17 6:00 PM

It's highly questionable if streaming can even be a sustainable business model without live DJs which is even more expense.

The biggest market for music is baby boomers and many of their favorites are reverting from major label to artist ownership which means the artists will be directly involved with every contract for the use of their music. It's a very good time to con investors into buying and then cash out before it all collapses.

www.audiomastery.com Bob's room 615 562-4346 georgetownmasters.com Georgetown Masters 615 254-3233 www.thewombforums.com

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seth

Ruby Baby

Posts: 5,680 Member Since:26/01/2011

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Apr 16 17 9:51 AM

bob olhsson wrote:
It's highly questionable if streaming can even be a sustainable business model without live DJs which is even more expense.

The biggest market for music is baby boomers and many of their favorites are reverting from major label to artist ownership which means the artists will be directly involved with every contract for the use of their music. It's a very good time to con investors into buying and then cash out before it all collapses.

QFE

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gtoledo3

Aqua Marine

Posts: 4,237 Member Since:23/10/2013

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Apr 16 17 10:08 AM

We should all be hoping for this to work out somehow, and for pay to become fair, as opposed to it all crashing and burning.

A streaming app... well, at least it is a legit modern form of media. It's not a raw file, that should likely be wrapped up in some container to BECOME some sort of robust, modern, media product.

I am sure that some of the people selling horse buggies and whips were really pissed at automobiles. Others probably figured out ways to adjust, or maybe even make autos.

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soapfoot

Ruby Baby

Posts: 7,512 Member Since:04/02/2011

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Apr 16 17 11:27 AM

gtoledo3 wrote:
We should all be hoping for this to work out somehow, and for pay to become fair, as opposed to it all crashing and burning.

A streaming app... well, at least it is a legit modern form of media. It's not a raw file, that should likely be wrapped up in some container to BECOME some sort of robust, modern, media product.

I am sure that some of the people selling horse buggies and whips were really pissed at automobiles. Others probably figured out ways to adjust, or maybe even make autos.

I'm with George.

The technology is good. The business model is what's unsustainable and unjust for the people who actually do the creative work.

"Records" as a discrete physical saleable program were a 20th century phenomenon. We can't go home again-- the best way forward is to figure out how to create a sustainable, fair, well-regulated and profitable industry for artists and producers within this new paradigm.

 

brad allen williams

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maarvold

Aqua Marine

Posts: 3,205 Member Since:23/01/2011

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Apr 19 17 8:46 AM

This week, Spotify relented, agreeing to withhold certain albums from the free tier of listeners. For a two-week window following their release dates, certain albums will only be available to paying subscribers...
...
Billboard reports that in return, Spotify got UMG to agree to lower royalty fees for hitting revenue targets


Isn't this 'robbing Peter to pay Paul'?  Or am I missing/not understanding something.  

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