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After being boosted by an upgrade from Goldman Sachs, Spotify’s stock closed with an all-time high of $267.48 per share on Thursday, raising its price target from $205 to $280. Recent podcast acquisitions like the “Joe Rogan Experience” and new advertising technology has increased the company’s revenue and subscribers. By the end of April, Spotify counted 130 million paid subscribers and 286 million total global users.
In an attempt to change UK policies within the post-Brexit trade deal, US collecting society SoundExchange has teamed up with American music industry organizations to launch a campaign called Fair Trade Of Music. The policy, specifically called the “reciprocity rule,” stipulates that non-UK performers are only due payment in circumstances where UK performers get paid in those non-UK performers’ home country. SoundExchange reckons this rule is not fair, and it is not a correct interpretation of international treaties. The change, according to the company, could increase flow of international royalties from other countries for its members.
According to Q1 2020 music subscriber market share figures published by consultancy firm Midia Research, there were 400 million music subscribers globally by the end of March. This represents 30% year-on-year growth, with 93 million net new music subscribers added since the end of March 2019.
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In this newsletter:
- Spotify Stock Closes at All-Time High
- SoundExchange Wants Remuneration Rights of US Performers in UK Put in Post-Brexit Trade Deal
- Report: There Were 400 Million Music Subscribers Globally at End of Q1 2020
- Report Claims Apple Could Face an Antitrust Probe in the US
- YouTube Touts TV Viewing, Creator-Led Originals Slate in Virtual Brandcast Pitch
Now, the details...
Compiled by Heidi Seo
Exploration Weekly - June 26, 2020
Spotify Stock Closes at All-Time High
Spotify’s stock closed with an all-time high of $267.48 per share on Thursday, boosted by an upgrade from Goldman Sachs, which raised its price target from $205 to $280. The company reached $236 on Monday and $241.76 on Wednesday. Recent podcast acquisitions and new advertising technology has increased Spotify’s revenue and subscribers. In its most recent numbers, 130 million paid subscribers and 286 million total global users were announced in its last quarterly earnings call at the end of April. The company has been on a podcast acquisition binge in recent months, inking deals with Warner Bros. and DC for exclusive scripted podcasts and landing the popular “Joe Rogan Experience” via a multi-year licensing deal reported to be for $100 million and one with Kim Kardashian West for one on criminal justice reform.
SoundExchange Wants Remuneration Rights of US Performers in UK Put in Post-Brexit Trade Deal
US collecting society SoundExchange has teamed up with American music industry organizations like the American Association Of Independent Music and the Recording Academy to launch a campaign called Fair Trade Of Music, which aims to try to force a change of policy in the “reciprocity rule” in the UK by adding national treatment provisions to the post-Brexit trade deal. Exact rights provided to copyright owners and/or performers by copyright law sometimes vary from country to country. When it comes to recordings of American labels and performers being played on the radio or in public in the UK, the “reciprocity rule” or the “mirror test” is applied, which means non-UK performers are only due payment in circumstances where UK performers get paid in those non-UK performers’ home country. So, with America, UK performers only earn from online and satellite radio in the US, which means US performers only earn here from the same uses of music here. Therefore, they are not due payment from AM/FM radio and public performance.
Report: There Were 400 Million Music Subscribers Globally at End of Q1 2020
According to consultancy firm Midia Research, music subscriber market share figures for Q1 2020 show that by the end of March, there were 400 million music subscribers globally. That’s compared to the 341 million people using paid music subscriptions at the end of 2019, published by global music industry body, the IFPI. Midia’s figure represents year-on-year growth of 30%, with 93 million net new music subscribers added since the end of March 2019. In his blog post, MD Mark Mulligan noted that this is an acceleration in growth, since the prior 12-month period had seen 77 million net new subs.
Report Claims Apple Could Face an Antitrust Probe in the US
According to Politico, “the Justice Department and a coalition of state attorneys general are taking the first steps toward launching an antitrust probe of Apple,” adding that the probe may focus on “Apple’s ironclad control of its App Store, the source of frequent griping by developers who say the company’s rules are applied inconsistently - particularly for apps that compete with Apple’s own products — and lead to higher prices and fewer choices for consumers.” The potential investigation runs parallel with the European Commission’s formal investigations into Apple, including one partially sparked by last year’s complaint from Spotify.
YouTube Touts TV Viewing, Creator-Led Originals Slate in Virtual Brandcast Pitch
YouTube took its annual Brandcast pitchfest virtual this year. The Google-owned company sent personalized videos - dubbed Brandcast Delivered - to ad buyers that gave them a window into some of its most popular video categories, from comedy to food to sports to education to music. “With film and TV production halted and cinemas closed, so much of our mass entertainment has ground to a halt. But what’s happening in the digital video space is arguably as relevant as it’s ever been in YouTube’s 15-year history,” Kevin Allocca, YouTube’s head of culture and trends, said in a video pre-recorded from his Queens apartment. People are watching its videos like they would traditional programming, reports YouTube. In the last year, there has been an 80% growth in YouTube watch time on TV screens, and more than 100 million monthly viewers watched the platform’s videos on TV sets in the month of March. A new slate of programming was announced as well, including renewals for Instant Influencer, a competition series from beauty guru James Charles.
- How to use the Phrygian Mode.
- Weezer gains a new milestone as the fourth act with Alternative Airplay Top 10s in four different decades.
- Comparing the music preferences of different countries.
- Ed Sheeran is named the UK’s most played artist for the fourth time in five years.
- JoJo unveils a new video of her heartbreak anthem "Small Things" from her fourth studio album "good to know".
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