Spotify is soon to acquire audiobook distribution company Findaway, marking the company’s first major acquisition in the audiobook space as it competes with other giants like Amazon’s Audible. The purchase is expected to close in the fourth quarter of this year as it is pending regulatory approval.
According to Peloton’s fiscal Q1 2022 (calendar Q3 2021) results, the fitness company posted a 6% year-on-year increase, marking a significant deceleration compared to the prior year quarter, when Peloton’s revenues rocketed by 232% YoY. As a result, annual revenue forecasts have been reduced from $5.4 billion to between $4.4 and $4.8 billion total revenue.
Numerous Chinese musicians will now be able to stream their music globally on Apple's platform after Apple Music announced that it reached an agreement with Tencent Music Entertainment (TME) this week. Music from record labels and artists that are part of TME Cloud Music will become available on Apple Music.
In this newsletter:
- Spotify to Acquire Audiobook Platform Findaway
- Music’s Rosy Fitness Story Hits a Speedbump, As Peloton Reduces Annual Revenue Forecast
- Tencent Music Partners With Apple Music On Global Streaming
- Apple Ordered to Allow External Payments in iOS Apps
- Spotify Expands Charts to Include Genre and Local Categories
- Tencent Music Entertainment Revenues Hit $1.2 Billion in Q3, Up 3% YoY
Now, the details...
Compiled by Heidi Seo
Exploration Weekly - November 12, 2021
Spotify to Acquire Audiobook Platform Findaway
Spotify will acquire the audiobook distribution company Findaway as the audio giant seeks to scale its catalog and creator tools in a similar fashion to its podcast offerings, the company said on Thursday. Findaway has both a full-service and self-service audiobook production platform for authors, narrators and publishers. The self-service option connects independent authors to narrators and provides access to global distribution, while top publishers like HarperCollins have used the full-service platform for audiobooks. The acquisition, pending regulatory approval, is expected to close in the fourth quarter of this year. Financial terms of the deal were not disclosed. The Findaway acquisition thus marks Spotify’s first major acquisition in the audiobook space as it competes with other giants like Amazon’s Audible.
Music’s Rosy Fitness Story Hits a Speedbump, As Peloton Reduces Annual Revenue Forecast
According to Peloton’s recently filed results for its fiscal Q1 2022 (calendar Q3 2021), the company generated total revenues of $805.2 million across the quarter. That $805.2 million represented growth of just 6% YoY, or an increase of $47.3m, compared to the $757.9 million recorded in the prior fiscal year quarter. The fitness giant’s YoY growth of 6% marked a significant deceleration compared to the prior year quarter, when Peloton’s revenues rocketed by 232% YoY to hit that $757.9 million figure. The company previously forecast total revenues for its fiscal 2022 of $5.4 billion, but has now reduced that figure to between $4.4 billion and $4.8 billion total revenue.
Tencent Music Partners With Apple Music On Global Streaming
Apple Music and Tencent Music Entertainment (TME) have reached an agreement that will allow hundreds of thousands of Chinese musicians to stream their music globally on Apple's platform, while giving Apple a way to scrape its way into China's booming domestic music market. Music from record labels and artists that are part of Tencent’s TME Cloud Music will become available on Apple Music, Tencent said in a statement on Tuesday (Nov. 9). The partnership is a breakthrough for Apple Music, which first entered the Chinese market back in 2015, but has made little impact in the country so far. Tencent controls 77% of the Chinese streaming market through its QQ Music, Kuguo and Kuwo platforms.
Apple Ordered to Allow External Payments in iOS Apps
In the US, a judge in Apple’s legal battle against Epic Games has ruled that the company must comply with an order to let developers add links and buttons to alternative payment options in their apps. Apple had asked for a delay in the enforcement of the order, arguing that “it’s going to take months to figure out the engineering, economic, business, and other issues”. The judge did not agree, although Apple can still make a further appeal to get the delay (‘stay’). If not, the order takes effect from 9 December.
Spotify Expands Charts to Include Genre and Local Categories
Spotify has launched a new Charts destination website that includes new Genre and Local charts, in addition to data and tools to give artists and listeners more information on releases. Available to all Spotify for Artists creators and Spotify listeners around the world, according to the announcement, “We created this destination for artists and fans to go deep on all the data and see what music is moving listeners around the world.” The new features include: Genre Charts, Artist Charts, City & Local Pulse Charts, Chart Data & Songwriter Credits, and Promo Cards.
Tencent Music Entertainment Revenues Hit $1.2 Billion in Q3, Up 3% YoY
Tencent Music Entertainment Group has published its financial results for Q3 2021 (the three months ended September 30, 2021). The company generated total revenues of RMB7.81 billion (approx $1.21billion) in Q3, representing an increase of 3% year-over-year. Meanwhile, TME reports that its total ‘Mobile MAUs – online music’ in Q3 were 636 million, a decline of 1.5% year-over-year from the 646 million the company counted in the prior year quarter. According to TME, this year-over-year decline was primarily due “to churns of our casual users served by other pan-entertainment platforms”. TME reports that its ‘online music paying users’ increased by 5m (37.7%) year-over-year however, reaching 71.2 million in Q3.
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