Thursday’s Themes . . .

THE SPOTIFY SWAMP JUST GOT A LITTLE MURKIER:    As if the accusation of manufacturing music from fake artists to save on royalty costs wasn’t enough, Spotify is now entangled in a pair of new lawsuits which allege the streamer is playing unlicensed music, and therefore owes royalties and penalties of $150,00 per infraction, which could add up to as much as $365M.  All of this comes after Spotify paid a $43M settlement in a class action lawsuit for doing this exact thing with other song writers.  Apparently that settlement didn’t cover the songs which are the basis of the latest law suit.  While it’s unlikely Spotify will have to pay hundreds of millions for this one, it does threaten their ability to go public later this year since potential investors tend to shy away from unresolved lawsuits.  It also speaks to the broader issue of sloppy music curation by Spotify, who seems to be cutting corners to play as much music as they can for the least possible royalties cost.

A DIGITAL DOUBLE WHAMMY FOR DEALERS:  It’s no secret that the US Auto Industry has slowed in 2017 as unit sales recede from the all-time high level of 2016.  With fewer buyers in the market it makes sense that there would be less traffic into dealers’ showrooms and to their websites.  The attached MediaPost link paints a bleak picture, with a 20% decrease in web traffic over the normally busy Fourth of July holiday week.  But what makes this even worse is the phenomenon of Search demand-pricing which effects what dealers pay for search-based leads.  With fewer potential buyers browsing online dealers have to bid up those who are searching, and end up paying a significantly higher CPC for those precious few leads.  The result is a Malachi Crunch where dealers’ marketing costs go up while sales go down.  Makes you feel for these guys!

SOMETHING TO THINK ABOUT:  Finally today, I’d like to leave you with a simple slide which will really get you thinking about how technology has transformed our society.  As a Gen-Xer I can remember a time when there was no internet.  I’m not just talking no mobile apps, we had no online access at all.  (My children still don’t understand how we survived.)  Of course today technology is ubiquitous, and resulting innovations like ride-sharing have changed the way we do everyday tasks.  The following is an anonymous picture taken of a slide at a media conference.  The image speaks for itself.  I reposted this on LinkedIn a few weeks ago and got over 50,000 views, so I thought it was blog-worthy.  Enjoy!

Have a great day guys!

253 thoughts on “Thursday’s Themes . . .

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