IS FACEBOOK GETTING INTO MUSIC STREAMING?: In December Facebook reached label direct performance royalty agreements with Universal and Sony. Those deals sparked speculation that FB was gearing up to launch a new music streaming service. Then last week there was another clue. According to the attached Investor Place link, FB has inked a deal with a European entity called ICE which covers performance and publishing royalties for thousands of artists in several international markets. ICE in Europe is equivalent to SoundExchange in the US – both act as a clearinghouse to track streaming plays, collect royalties from streamers, and distribute collected money to artists, labels, and songwriters. The fact that FB has entered into a multi-year deal with ICE tells you they’re gearing up for some sort of music play. One possible use of this agreement would be to allow FB users to embed published songs in social posts, messaging, etc.. The other scenario is FB launching a full-scale audio streaming service to compete with Pandora, Apple and Spotify. Anyone have a guess?
ADDING INSULT TO INJURY FOR SNAPCHAT: Nothing like kicking a publisher when it’s down. As a follow up to last week’s PR double whammy, Snapchat is now facing a much more tangible advertiser problem. Last week L’Oreal’s Maybelline brand tweeted a question in the image below. To give you some perspective on this, I’ve been in media sales for a quarter of a century and I can’t remember an instance when a brand publicly announced that their marketing metrics had dropped on a particular platform and asked users if they should stay on that platform. AdAge has the details of how this played out in the in the attached link. After the original post (and 6,000+ votes!), L’Oreal tried to walk back the comments later in the day when it posted that “the tweet from an individual within our Maybelline brand in no way reflects the views of the company, nor the Maybelline brand. We have a strong partnership with Snap Inc. and are happy with the results we are seeing with the platform.” Even though this appears to be a rogue comment and not the client’s official position, where there’s smoke there’s usually fire. I doubt anyone at Maybelline would have thought to post the question unless it’s Snapchat engagements had significantly dropped. If other advertisers start to see a material drop in their usage metrics this could be Snapchat’s biggest problem of all. So now I’m wondering how many of those 6,000 votes were from Snapchat employees stuffing the ballot box to save the Maybelline account?!?
APPLE’S DOING IT FOR THE ARTISTS, NOT THE MONEY: Here’s rule #1 in business – when the CEO of a large public company says “we’re not in it for the money”, DO NOT believe them. That’s exactly what Tim Cook tried to spin during a Fast Company interview, as reported in the attached Musically article. To put that quote in context Mr. Cook was trying to justify the premium price for Apple’s new HomePod speaker because of its superior acoustic quality compared to the competition’s “little squeaky speakers”. This is the same Apple which single-handedly broke the back of the global music industry when it started selling individual songs via iTunes downloads for 99 cents as an alternative to consumers buying whole albums for $12-15. This is also the same Apple whose new HomePod speakers only link to Apple Music unless you buy another piece of Apple hardware to connect to other streamers. Does this sound like a company which doesn’t care about money and only has the artists’ best interest in mind? With friends like this I don’t think the music industry needs any more enemies.
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