Could 100,000 Songs A Day Sink Spotify?
Live Music Is Still Booming (Despite What You Heard)
TAKEAWAYS
Salient statements from this week’s music news.
1. Why Ingesting 100K Tracks a Day May Not Prove Sustainable for Spotify in the Long-Term
While major labels voice concern about the dilution of their “high-quality” releases, it could be the cost of storing all the other stuff that sinks Spotify.
Takeaway: Could Spotify soon see both its biggest partners – the major record companies – and SPOT’s biggest investors, both calling for a downsizing of its catalog, or more restrictions on the amount of so-called “low-quality” content being uploaded to its service?
2. Video Games Introduced Me to the Chemical Brothers - Now Teens Find Music Through Fortnite
TikTok gets the attention, but video games (and the gatekeepers who program them) remain a powerful force in music discovery.
Takeaway: Video games’ influence over music discovery is only growing; depending on which study you look at, between 25% and 30% of people now encounter new music through games – and the proportion is higher among gen Z.
3. Obscure Copyright Rule Change Might Be Big Win for Songwriters
Songwriters can take back their rights from publishers decades later. But revenue from licenses issued prior to the takeback stays with the publisher who did the deal.
Takeaway: Spotify arguably already has an existing license in place with the old publisher. So, isn’t the copy of the song on Spotify an existing derivative work? And shouldn’t the royalties from it continue to go to the old publisher under that license?
4. Live Nation Turns in Record Quarter as Touring Business Booms
Touring costs might be taking artists off the road, but fans are still spending in record amounts.
Takeaway: Looking ahead, the busy touring season will continue into 2023 and consumer demand appears to be holding strong despite widespread fears of an upcoming recession and tightening budgets due to persistent inflation.
5. Women Make Up Just 15% of Top Songwriters, New Report
Olivia Rodrigo, Billie Eillish and Doja Cat hold spots in the Top 10, but the number drops precipitously after that.
Takeaway: The average number of songwriters contributing to each of those songs has fallen year-on-year, from five to 4.4, while pop AND country have both overtaken rap in the top genre rankings. Also interesting, the percentage of American songwriters involved in the top 100 songs fell from 60% to 46%, with India (from 2% to 9%) and Puerto Rico (2% to 6%) among the key growers.
6. Music Funding Platform beatBread Launches Exclusive Investor Network
The music finance company is opening up bids to “high net worth” who want a piece of future royalties from artists.
Takeaway: Artists who qualify for the invite-only investor network can set their minimum terms, and if no combination of funding offers from within the network meet the artist’s threshold, beatBread says they’ll be able to accept their original offer from beatBread or walk away entirely.
