Tag: Spotify

Spotify accused in suit of cheating songwriters out of royalties

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Spotify Technology SA used a legalistic word change to justify slicing royalties to musicians and publishers, reducing the revenue on which royalties are based by almost 50%, according to lawsuit filed by the group that collects their payments.

The change came in March when Spotify added the word “bundled” to its description of its $10.99-a-month music streaming service, the Mechanical Licensing Collective said in its complaint. Nothing else “about the Premium service has actually changed,” according to the suit filed Thursday in federal court in Manhattan.

The collective is legally barred from disclosing how much Spotify royalties declined since March but cited a Billboard story that estimated the loss would amount to about $150 million next year.

Spotify said it looks forward to “swift resolution” of the lawsuit, which it said concerns terms that publishers and streaming services “agreed to and celebrated years ago.”

“Bundles were a critical component of that settlement, and multiple DSPs include bundles as part of their mix of subscription offerings,” a Spotify spokesperson said in a statement. “Spotify paid a record amount to publishers and societies in 2023 and is on track to pay out an even larger amount in 2024.”

The fight over bundling between the streaming service and publishers has spilled into a dispute over other issues.

The National Music Publishers’ Association on Wednesday sent a cease-and-desist letter to Spotify over products it claims are infringing on songwriters’ copyrights. The NMPA alleges that music videos, lyrics and podcasts on the platform are all using copyrighted music without the proper permissions.

“Before Spotify’s ‘bundling’ betrayal, we may have been able to work together to fix this problem, but they have chosen the hard road by coming after songwriters once again,” David Israelite, chief executive officer at the NMPA, said in a statement.

In response, a Spotify spokesperson called the letter a “press stunt filled with false and misleading claims.”

Music and audiobook streaming companies, like Spotify, pay musicians and music publishers under a complex system set out in 2018 by the Music Modernization Act of 2018. Under the system, streaming services pay less per stream — in other words, less to creators and publishers — when their services are classified as bundles.

Spotify’s Premium service, which was not classified as a bundle before March 1, includes unlimited music downloads and 15 hours of audiobooks. It added the audiobook offering in November in the US without changing the $10.99 price.

The licensing collective is asking the court to order Spotify to stop classifying Premium as a bundled service and to pay it for lost revenue.

Israelite praised the Mechanical Licensing Collective for “not letting Spotify get away with its latest trick to underpay creators.”

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Spotify says Apple has rejected its app update with price information for EU users

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Apple has rejected Spotify’s new version of its iOS app with in-app pricing information for users in the European Union, the audio streaming firm said on Thursday.

The Swedish company submitted a new version of its app to Apple with basic pricing and website information, which is a minimum requirement under the European Commission’s ruling in its music streaming case, it said in a post on X on Wednesday.

“Apple continues to break European law,” and unfortunately that means we still can’t give EU consumers the information they need and the choices they deserve in our app. Here’s what we mean. pic.twitter.com/tkcXQkRqLy

— Spotify News (@SpotifyNews) April 24, 2024

Spotify said the Cupertino-based giant rejected its update in a response directly sent to the company.

Apple and the European Commission did not immediately respond to Reuters requests for comment.

“Apple has once again defied the European Commission’s decision, rejecting our update for attempting to communicate with customers about our prices unless we pay Apple a new tax. Their disregard for consumers and developers is matched only by their disdain for the law,” a spokesperson for Spotify said in a statement.

In March, Brussels fined Apple with 1.84 billion euros ($1.97 billion) for thwarting competition from music streaming rivals via restrictions on its App Store, marking its first ever EU antitrust penalty, following a 2019 complaint from Spotify.

Earlier this month, Apple also announced measures that would let music streaming apps on its App Store in the European Economic Area to inform users of other ways to purchase digital services, as it looks to comply with a European Union mandate.

Under Apple’s proposal, Spotify and other streaming services can include link to their websites to inform users of payment options outside its App Store. However, Spotify said in the new version submitted to Apple it did not include the in-app link.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

What’s inside a billion-dollar music catalogue

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Merck Mercuriadis, a former manager of Elton John and Beyoncé, founded Hipgnosis in 2018 in London. The company — listed on the London Stock Exchange — has been actively acquiring song catalogues for artists intending to transform music into an asset class.

According to its official website, it currently owns 146 catalogues with 65,413 songs, of which 163, like Shape of You by Ed Sheeran and Royals by Lorde, have won the Grammy Award. The company earns royalty from the use of these songs.

For example, streaming platforms pay a portion of their revenue to Hipgnosis as royalty for these songs.

Some of its collection, housed under Hipgnosis Songs Fund, is now up for sale, and there are at least two bidders.

Private equity giant Blackstone has reportedly made a preliminary offer of $1.5 billion. Hipgnosis also received a $1.4 billion bid from its rival Concord Chorus, which was backed by Apollo Capital Management last week.

Shareholders will vote on June 10 to approve one of the bids, including any that may arrive later.

Here’s a look at some of the most popular artists and songs inside one of the most sought-after music catalogues:

Follow our music coverage here 

[Edited by: Sriram Iyer]

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Srartup Digest: Dhruva Space bags ₹78 cr from IAN Alpha Fund, Nat Habit crosses ₹100 crore ARR in FY24 & more

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Investors Vs Byju’s: NCLT defers hearing to June 6

No relief for beleaguered edtech Byju’s as National Company Law Tribunal has deferred the rights case issue to June 6. NCLT is hearing a plea filed by four investors regarding oppression and mismanagement at Byju’s.

The investors have alleged during the hearing that Byju’s had not deposited the money it received from rights issue prior to February 27 in the escrow account.

In its order on February 27, NCLT directed Byju’s not to allot shares to investors participating in the rights issue without increasing its authorised share capital. The company was also asked to keep the proceeds of the rights issue in an escrow account to protect investors’ rights.

Sources at BYJU’S had informed CNBC-TV18 on April 22 that the company planned to request the release of the funds received from the rights issue, which are currently held in an escrow account, to be able to clear its salary and other obligations. 

Dhruva Space bags ₹78 cr in Series A2 round led by IAN Alpha Fund

Spacetech startup Dhruva Space has raised ₹78 crore in its Series A2 funding round led by IAN Alpha Fund, with participation from existing investors. With this, the company has brought its Series A corpus to ₹123 crore.

The fresh capital will enable the company to establish spacecraft manufacturing and testing capabilities, and launch customer missions with the larger satellite buses, namely P-30 and P-90. Dhruva Space said it is setting up the first phase (1.2 lakh square-foot) of their 2.8 lakh-square-foot world-class spacecraft manufacturing facility in Hyderabad to invest in continued innovation upon the existing product line to go to the global market.

Dhruva Space has launched eight payloads in the last 2 years, including the Thybolt satellite mission in November 2022 and the LEAP-TD mission on January 1, 2024. Building on this, the coming years will see several customer launches with the company’s P-30 nanosatellite platform and P-90 microsatellite platform.

Nabhdrishti Aerospace raises ₹3 crore in Pre-Seed round

Deeptech startup Nabhdrishti Aerospace has raised ₹3 crore in a pre-seed funding round led by IIMA Ventures (formerly IIMA-CIIE).

Founded in 2023, the startup will design and develop gas turbine engines, beginning with a 350 SHP turbo-prop engine for aviation and power generation use cases. The micro gas turbine (MGT) engines will be indigenously developed and manufactured and will feature fuel flexibility to enable clean fuel compatibility and enhanced efficiency.

The fresh funds will be used to aid the development of a fuel flex combustor prototype via thorough testing on the fuel injector and combustor, enabling the company to showcase the proprietary fuel flex technology.

Flipkart Ventures to fund GenAI-based early stage startups

Flipkart Ventures, the investment arm of e-commerce major Flipkart, has invited applications for its accelerator programme. As part of the Flipkart Leap Ahead (FLA) programme, selected startups will receive equity investments between $200,000 and $500,000, according to a statement.

Announcing the third cohort of FLA, the firm said the programme aims to accelerate the growth journey of early-stage startups. Applications for the programme will be open from April 22 to May 26.

It added that these startups will also receive two-month mentorship, wherein industry veterans, operators, and founders will guide these entrepreneurs to prepare them for hyper-growth.

Nat Habit surpasses ₹100 crore ARR in FY24; aims to be EBITDA profitable in 18 months

D2C natural beauty and personal care brand Nat Habit has announced that it has crossed ₹100 crore-mark in terms of its annualised revenues in FY24. The brand also aims to become EBITDA profitable over the next 17–18 months.

According to the startup, about 55% of its revenue comes from its own D2C site and the balance comes from e-commerce marketplaces. Nat Habit said it is witnessing 30% of its business come from smaller cities and tier-2 markets.

Since the Series B funding of $10.2 million in December 2023, Nat Habit said it had further accelerated its expansion and innovation efforts. “We are poised for an exciting future with investments in R&D, robust in-house tech capabilities and commitment to optimise our supply chain to handle current and new product offerings,” said Gaurav Agarwal, Co-founder of Nat Habit.

BharatPe launches an all-in-one payment device

Fintech company BharatPe has launched an all-in-one payment product that incorporates POS (point of sale), QR, and speaker into a single device.

Called BharatPe One, the product is designed to streamline transactions for merchants, offering versatile payment acceptance options including dynamic and static QR code, tap-and-pay and traditional card payment options.

The company plans to launch the product in over 100 cities in the first phase and further scale it to more than 450 cities over the next six months.

Razorpay announces ‘UPI Switch’ in partnership with Airtel Payments Bank

Fintech company Razorpay has launched its own UPI infrastructure with ‘UPI Switch’, a cloud-based innovation in partnership with Airtel Payments Bank, and said the solution is geared to ensure smoother and faster transactions.

Boosting success rates by 4-5%, the solution is designed to handle up to 10,000 transactions per second (TPS) at any given time, according to a release.

The ‘UPI Switch’ will also enable 5 times faster access to UPI (Unified Payments Interface) innovations for businesses, it added.

Swiggy launches Smart Links to boost orders for restaurants with a digital presence

Food delivery platform Swiggy, has announced the launch of ‘Smart Links’, a tool designed to empower restaurants of all sizes to enhance their online presence and drive growth.

This new tool helps restaurants convert social media footfall to business with just one click. Smart Links has already driven over 4 million menu sessions for over 35,000 restaurant partners, Swiggy said in a statement.

“Smart Links, which Swiggy is customizing for free for all restaurant partners, will be a game-changer by giving restaurants the power to easily access and customize these links. This allows them to measure individual channel performance and compare all in the owner app, thereby promoting themselves effectively, driving actual orders, and gaining a better understanding of their customers as well as spend on online platforms and social media,” said Deepak Maloo, AVP – Supply, Swiggy.

WeWork India adds two new buildings

Flexible workspace provider WeWork India has announced the expansion of their operations in the country by signing lease agreements for two new buildings.

Set to open in the next couple of months, the new buildings — HQ27 in Gurugram and Amanora Crest in Pune — are located in key business hubs and will redefine the workspace experience for professionals and enterprises alike, the company said.

The two buildings will add over 3,100 desks, spread across over 1,83,000 square feet of space to the existing portfolio.

Global Technology & Startup News

Microsoft introduces smaller AI model

Microsoft has announced a cost-effective, small language artificial intelligence model that can perform tasks such as content creation and create social media posts while using smaller amounts of data.

The company introduced an AI model called Phi-3-mini, which can outperform models twice its size across a variety of benchmarks that evaluate language, coding and math capabilities, it said in a statement.

Smaller AI models are designed to perform simpler tasks, making it easier for use by companies with limited resources, Microsoft said.

Adobe to bring full AI image generation to Photoshop this year

Adobe plans to place a tool for full artificial intelligence image generation in its Photoshop software later this year.

Adobe’s image and video editing tools are widely used by creative professionals, but it faces rising competition from startups such as Microsoft-backed OpenAI, Midjourney and Stability AI, all of which offer services that can generate images from text prompts.

Adobe is developing its own image-generation AI system called Firefly, which is trained on data that Adobe has rights to, in order to avoid copyright infringement claims against users.

Meta opens Quest operating system to third-party device makers

Meta is sharing its Quest headset’s operating system with rival device makers, including Microsoft for the first time, as it works to extend its influence over the emerging virtual and mixed reality industry.

The move will allow partner companies to build their headsets using Meta Horizon OS, a rebranded operating system that brings capabilities like gesture recognition, passthrough, scene understanding and spatial anchors to the devices that run on it, the company said in a blog post.

The social media company said partners Asus and Lenovo would use the operating system to build devices tailored for particular activities. Meta is also using it to make a limited edition version of the Quest headset “inspired by” Microsoft’s Xbox gaming console, according to the company’s statement.

Amazon launches low-cost grocery delivery subscription plan in US

Ecommerce giant Amazon, has launched a new grocery delivery subscription in the United States for members of its Prime program and customers who are recipients of the government food assistance benefits.

The subscription plan would allow Amazon’s Prime members to get unlimited grocery delivery at $9.99 per month on orders over $35 from Whole Foods Market, Amazon Fresh, and other local grocery and specialty retailers on the platform, including Save Mart, Bartell Drugs, Rite Aid and Pet Food Express.

The service will be available in over 3,500 cities and towns across the country.

Injury rates for Musk’s SpaceX exceed industry average for second year: Report

Injury rates at SpaceX facilities continued to exceed an industry average in 2023, according to a Reuters review of safety data reported to U.S. regulators by the space venture controlled by billionaire Elon Musk.

The 2023 records, newly disclosed by the Occupational Safety and Health Administration, also show that injury rates at some SpaceX facilities grew worse than those the company had reported in 2022.

At its manufacturing-and-launch facility in Brownsville, Texas, for instance, SpaceX reported 5.9 injuries per 100 workers, surpassing its rate of 4.8 injuries in 2022 and topping a space industry average of 0.8.

Spotify’s monthly user numbers miss estimates on lower promotions

Spotify has reported quarterly monthly active users (MAU) below its own estimates, as the Swedish music streaming company chose to boost profit instead of spending more on marketing activities to draw in more listeners.

First-quarter MAUs rose 19%, but missed Spotify’s own guidance and a median of analysts’ forecasts of 618 million. It also forecast current-quarter MAUs at 631 million, missing estimates of 636.3 million, according to IBES data from LSEG.

Premium subscribers, who account for most of the company’s revenue, rose by 14% to 239 million, in line with estimates. Spotify has been cutting costs, including through layoffs and its marketing budget, as it looks to increase margins and profits.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Taylor Swift’s ‘The Tortured Poets Department’ album breaks multiple Spotify records; 9 tracks rank in top 200 in India

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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In a phenomenal feat, Taylor Swift’s latest album ‘The Tortured Poets Department’ which dropped on Spotify on April 19, claimed the title of the most-streamed album in a single day in the audio streaming platforms history.

The milestone adds another feather to the ‘Florida!!!’ singer’s career. The American singer-songwriter now boasts the top three spots for the most-streamed albums in a single day on Spotify. Leading the charge is “The Tortured Poets Department”, followed by “Midnights” and “1989 (Taylor’s Version).”

The 34-year-old has now solidified her status as the most-streamed artist in a single day on Spotify with the release of her latest musical offering.

History made! On April 19, 2024, Taylor Swift’s The Tortured Poets Department was the first album in Spotify history to have over 300M streams in a single day.

— Spotify (@Spotify) April 20, 2024

After almost a decade of making their friendship public, Swift and British indie powerhouse Florence Welch joined forces. The two singers who made heartbreaks and heartaches,  relatable and borderline desirable, came together for a song that will be remembered for ages to come.

Also read: Taylor Swift surprises with extra tracks on ‘The Tortured Poets Department’ album

Following the announcement of her upcoming album at the Grammys in February this year, fans’ anticipation reached a fever pitch. To amplify the excitement around the album’s release, Spotify held an art installation at The Grove in Los Angeles, transforming the shopping mall into a poetry to captivate music enthusiasts. Swift’s 11th studio album features 16 tracks.

Taylor Swift’s is synonymous for breaking records on Spotify. With each release, whether it be re-recordings or new music, Swift has consistently set new benchmarks on the audio streaming platform. In October 2022, her 10th studio album “Midnights” released on Spotify and went on to become the most-streamed album in a single day at the time.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Spotify could bring lossless audio with a more expensive ‘Music Pro’ plan

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Music streaming service Spotify is gearing up to raise its subscription prices and introduce a premium tier called “Music Pro,” according to a recent report.

The price increase, set to roll out in select countries, comes amid growing anticipation for Spotify’s long-rumoured foray into lossless audio.

Rumours about Spotify’s venture into lossless audio are not new. The more expensive tier was first announced in February 2021 and was called “Spotify HiFi” at the time. In 2023, Hashtag inventor and product consultant Chris Messina discovered something called the “Spotify Supremeium” plan which was supposed to have lossless audio.

Interestingly, soon after Spotify’s initial announcement, Apple Music came up with a similar technology in June 2021 and does not charge extra for it.

This time, the revelation of a “Music Pro” subscription emerged from hidden code within the Spotify app. The premium tier will offer Free Lossless Audio Codec (FLAC) audio files at resolutions of up to 24-bit/44.1kHz, positioning it as a contender in the high-fidelity audio market. By comparison, Apple Music provides lossless files ranging from 16-bit/44.1 kHz to 24-bit/192 kHz.

Lossless audio, characterised by its preservation of original audio data during compression, promises an unparalleled listening experience with enhanced detail and clarity. However, enjoying such quality typically necessitates specialised equipment, such as premium wired headphones.

In addition to lossless audio, the “Music Pro” subscription will reportedly introduce innovative features, including a remix function enabling users to manipulate tracks and a headphone optimization feature tailored to specific models like Apple’s AirPods. Moreover, advanced AI-based filters for playlist creation and discovery are anticipated to enhance user experience.

Despite Spotify’s efforts to justify the premium price tag associated with lossless audio, Apple has taken a different approach, offering high-fidelity audio to all Apple Music subscribers at the current ₹99 a month plan.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Spotify takes on TikTok by introducing new remix feature

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Spotify is stepping up its game with a new remix feature, taking cues from TikTok’s trend of altering tunes, The Verge reported, adding that this upcoming tool will allow subscribers to adjust the speed, tempo, and even mix tracks from their favourite artists.

Expected to roll out soon, these tools could offer a fresh revenue stream for artists, countering the loss incurred from unauthorised remixes, the report stated. The move comes as Spotify seeks to tap into TikTok’s massive user base and the culture of remixing prevalent on the platform.

One key function will be the ability for users to control playback speed, a feature already popular on TikTok. Per The Vrge, analysis shows that a significant portion of TikTok’s music content undergoes speed or pitch alterations, reflecting a growing trend among younger demographics.

Also read: Spotify to raise prices on its plans in select markets: Report

Spotify plans to integrate these features into its Premium subscription, likely offering basic tools at the standard rate and more advanced options in a higher tier. This strategy aligns with Spotify’s broader efforts to enhance its premium offerings, including the long-awaited Spotify HiFi.

The motivation behind these features extends beyond convenience; it addresses a longstanding issue in the music industry. Unauthorised remixes, prevalent across various streaming platforms, divert revenue away from rightful owners. By enabling user-generated remixes tied to the original recordings, Spotify aims to ensure artists receive due compensation for their work.

Unlike TikTok, where remixes often circulate freely, Spotify intends to keep user-generated remixes within its ecosystem.

Already, some artists have embraced this model, releasing alternate versions of their songs to meet the demand fueled by TikTok trends. By leveraging Spotify’s remix tools, artists like SZA and Isabel LaRosa are finding new avenues to engage with their audience and monetize their music beyond traditional releases.

Also read: Spotify’s record $9 billion in royalties fuels global and indie artist growth

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Spotify to raise prices on its plans in select markets: Report

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Spotify intends to raise prices on its plans by about $1 to $2 a month in five markets including the UK, Australia and Pakistan by the end of April, Bloomberg News reported on Wednesday, citing people familiar with the matter.

Shares of the Swedish music streaming service rose more than 5% in early trading.

Spotify will raise prices in the United States, its largest territory, later this year, according to the report.

The company is also going to introduce a new basic tier that will offer music and podcasts — but not audiobooks — for the current $11 monthly price of an individual premium plan, the report said.

The new basic tier is the first of what will be several new pricing options from Spotify, the report added.

Spotify declined to comment on the report, when contacted by Reuters.

CEO Daniel Ek said earlier in February the company has “plenty of levers to pull, including price increases,” adding the investments in the podcasts were a drag on the business in 2023.

On a monthly basis, the company offers premium plans including $10.99 for an individual, $14.99 for duo and $16.99 for family in the US, according to the company’s website.

Under the new pricing, individual plans will go up by about $1 a month, while family plans and so-called duo plans for couples will rise by $2, the Bloomberg report added.

Also Read: Spotify to test full music videos in potential YouTube faceoff

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Spotify’s record $9 billion in royalties fuels global and indie artist growth

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Spotify paid out $9 billion in streaming royalties last year, the streaming giant said Tuesday in its latest “Loud and Clear” report.

Spotify’s fourth annual report, which originally launched in 2021 following criticism over its lack of transparency, noted record accomplishments, including the highest annual payment from any retailer to the music industry.

“This is everything we know about how much is being paid out, how many artists are achieving different levels of success,” says Charlie Hellman, the vice president and global head of music product at Spotify. “So, everyone can have access to the information and be sort of up to date with the state of the industry.”

According to the data, 1,250 artists generated over $1 million each in recording and publishing royalties in 2023; 11,600 generated over $100,000 and 66,000 generated over $10,000 — numbers that have almost tripled since 2017.

More than half of those 66,000 artists came from countries where English is not the primary language, the report says, reflecting an increasingly global music landscape.

And “indie” artists — the self-distributed, do-it-yourself acts and those on independent record labels, according to Hellman — accounted for $4.5 billion, half of all royalties paid out by Spotify.

“There are millions of people who’ve uploaded a song at least once but that doesn’t really speak to whether they’re an artist, or if they’re doing this more as a hobby,” Hellman says.

Spotify zooms in on artists that have “at least put up an album’s worth of music once they seem to have some indication that they’re trying to build a fan base.” He estimates there are “about 225,000 professionally aspiring artists” on the platform.

“They have a little bit of a following. They might, you know, have gigs listed on Spotify or things like that,” he says.

In December, Spotify announced it was axing 17% of its global workforce, the music streaming service’s third round of layoffs in 2023 as it moved to slash costs while focusing on becoming profitable.

The previous month, Spotify announced it would eliminate payments for songs with less than 1,000 annual streams, starting in 2024.

“Songs that generate less than a thousand streams in a year would be generating pennies, a few cents in royalties,” Hellman explains. “So what we’re seeing was that there was an increasing amount of uploaders that had $0.03, $0.08, $0.36 sitting there.”

For those DIY artists, there’s a minimum threshold to withdraw money from a distributor — $5.35 at DistroKid and $1 at TuneCore, two such distributors — and Hellman argues the withdrawal fees would eclipse the royalties.

Spotify — and most other streaming services — pay royalties to the rights holders of the music on its platform, a number which is determined by “streamshare.” That’s calculated by adding up how many times music owned or controlled by a particular rights holder was streamed and dividing by the total number of streams in that market.

In short: Larger rights holders have a larger percentage of the market share. And a listener streaming an artist 25% of the time does not mean the act receives 25% of the listener’s subscription fee.

“All those pennies sitting in bank accounts all over the place was siphoning money away from artists that were really doing this, as an aspiring professional,” says Hellman of the decision. “And so, those royalties are now being put in the pot so that they can be redirected to artists that are getting more than a thousand streams a year.”

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Spotify to test full music videos in potential YouTube faceoff

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Swedish music streaming company Spotify is rolling out full-length music videos in a limited beta launch for premium subscribers, venturing into an arena that YouTube has dominated for nearly two decades.

Music videos will be available to premium users in the UK, Germany, Italy, Netherlands, Poland, Sweden, Brazil, Colombia, Philippines, Indonesia, and Kenya, in beta starting on Wednesday, the company said, as it attempts to grow its user base.

While it aims to reach 1 billion users by 2030, Spotify’s new plan faces competition from Apple Music and Alphabet’s YouTube, which allows users to watch music videos for free.

Spotify’s rollout will include a ”limited catalogue of music videos, including hits from global artists like Ed Sheeran … or local favourites like Aluna,” it said.

In March last year, Spotify introduced ”clips”, under-30-second vertical videos that are uploaded directly to Spotify for artists.

The company has also expanded its offerings to include podcasts and audiobooks in a bid to attract more users.

In February, it forecast premium subscribers would reach 239 million in the current quarter, above estimates of 238.3 million.

Also read: Apple faces hefty 1.8 billion euro fine in EU antitrust Spotify lawsuit

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow