SPOTIFY’S STAND ON FREE LISTENING: First up today is some fresh perspective from Spotify’s head of Label Relations on the topic of free ad-supported listening. There’s been much speculation in the industry about whether or not the labels will continue to allow Spotify to offer free listening outside of the subscription pay wall. Right now Spotify is living month-to-month on grandfathered licensing deals, as they try to negotiate long-term contracts similar to the ones Pandora just inked. Apparently Spotify is pretty bullish on the prospect of keeping their free tier, as noted in the following CNET link. Not sure where this is headed, but it’s worth keeping an eye on. https://www.cnet.com/news/spotify-free-tier-staying-if-spotify-has-its-way/
ANOTHER ROYALTY BATTLE BREWING: Last Fall, as we were awaiting the CRB’s ruling on the streaming rates Pandora and others would pay from 2016-2020, did you ever wonder how satellite radio (Sirius XM) gets the licensing for their music? Well SoundExchange hasn’t forgotten about these guys, as evidenced by their formal request to double the performance royalties satellite will pay for music from 2018-2022. Obviously this is just SoundExchange’s starting position in a long negotiation, so I’d expect the final number to be much lower. But keep in mind that either the % of revenue or % per subscriber model (shown in the link below) is only for music. On top of these royalties, Sirius still has to pay for spoken word content like Howard Stern and sports like MLB. Safe to say there’s no free ride, even for satellites, in the audio game! http://rainnews.com/soundexchange-files-royalty-rate-request-for-satelite-radio/
TRITON RATINGS – AUG’17: Looks like Triton is playing catch up with their Monthly Webcast Metrics Ratings, because they released their August #s just two weeks after July came out. Overall August showed a seasonal rebound from the summer doldrums with a 4% MoM increase. When compared to Aug’15 all streamers are up 16% – so we’re still seeing very healthy YoY growth. In addition to the normal historical graph below, I thought I’d share the 6a-12md ranker showing total consumption by streamer. The key number in the table below is AAS, which is the average number of active sessions each streamer has at any given time. So Pandora has 2,063,000 listeners at any given moment, Spotify has 1,259,000, iHeart has 311,000, etc.. http://rainnews.com/webcast-listening-enjoys-an-august-uplift-triton-digital/
Have a great Wednesday guys!
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