Tag: Streaming Wars

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New Platform The Van Hopes To Disrupt The Streaming Marketplace

The Van

The Van hopes to separate itself from its streaming competitors by emphasizing artist compensation over company revenue.

The van is a new worldwide music streaming platform exclusively for indie artists & labels, that enables & encourages listeners to support artists by compensating them directly. The platform encourages bands to make a contribution to the artists they enjoy without requiring a subscription fee or purchase minimum. It is perhaps the first streaming platform to truly place talent before its own interests, and it’s now available worldwide.

For listeners, the van removes the usual commitments & requirements that impede their ability to compensate artists flexibly, equitably and directly. For artists, it offers another means by which to monetize their creative work, on a non-exclusive basis, free of platform fees — while allowing them to upload & manage their music independently (without third-party distributors).

PayPal powers all transactions, and U.S. listeners on the mobile site can make contributions using Venmo. Funds from the artist’s share of a support transaction are deposited into their PayPal account immediately, subject to no holding period.

BUT. There is a small catch.

Artists and labels are personally invited and approved by The Van admin. Curation is managed by human programmers highlighting a limited array of releases at any one time and foregoing the use of algorithms that tend to filter out as much great music as they corral.

Does the world need another streaming service? It’s effortless to say that it does not. After all, the vast majority of all recorded music is available on every platform, and the number of unique benefits any platform can offer is limited.

The world needs a streaming service that emphasizes the importance of compensating artists instead of celebrating algorithms. Musicians worldwide are unhappy with how Spotify, Apple Music, and Amazon music compensate talent. These corporations are making billions while artists make fractions of a cent, and no amount of picketing or complaining online seems to convince those in power to change their methods. The Van may not prove to be a perfect solution, but it is attempting to find better ways of compensating artists and highlighting their talent. That’s better than nothing.

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Spotify takes aim at Apple: “It’s time to play fair.”

A new video from Spotify criticizes the company’s control over the mobile market with the blistering message, “Apple comes between you and the music you love to listen to.”

The streaming wars are never-ending. A decade after the launch of Spotify, consumers have more choices than ever when it comes to streaming providers. There are dozens of companies competing for billions in potential revenue, and the two biggest names are currently locked in a brawl that seems unlikely to be resolved anytime soon.

This week, Spotify was integrated into Siri, the AI assistant included with all Apple devices. Why it took so long for such an obvious thing to happen confused many, but Spotify laid out the truth in a blistering indictment of Apple and its numerous platforms in a video featuring their signature animations. Check it out:

The video can be summarized in one blistering comment:

“We don’t love it when Apple comes between you and the things you love to listen to.”

Spotify’s video explains how Apple sets itself up to be a “referee and player” in the world of audio streaming. The company sites the 30% subscription fee the app store requires Spotify to pay as proof of this claim, as well as the fact Apple does not allow subscription through any other means. Spotify also accuses Apple of using its position of power to continually move the goalposts of the streaming business in a way that benefits its platform, Apple Music. Additionally, they accuse the company of hiding their deals, including the three months of free premium service given to all new subscribers.

At the time of this post on October 8, Apple has not yet responded to Spotify’s claims.

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Spotify surpasses 230 million monthly users, 108 million subscribers

In a new call with investors, Spotify revealed continued, if slow, growth.

It’s good to be king. Spotify was the first to make a big splash with music streaming, and their early entry into the marketplace helped propel the Swedish company to the top of the food chain. These days, the term Spotify has become synonymous with streaming. “You can find them on Spotify” means, “you can stream their music online.” That’s an excellent place to be, and the latest stats for the music company show the good times are far from over.

Spotify held its Q2 earnings call with investors earlier this week. During the update, the company announced it had passed 232 million monthly active users, up 29% since this time last year. Spotify also boasts 108 million paid subscribers, up 31% year over year. An infographic detailing all the latest developments at the company was also released. Check it out:

The biggest announcements of Spotify’s Q2 earnings report.

Apple Music is Spotify’s closest competitor. At the beginning of July, Apple Music announced it had just surpassed the 60 million subscriber mark, which leaves Spotify with a substantial lead. However, the new data from Spotify reveals a slowing adoption rate for subscribers. The cause for that slowdown is not clear, but market saturation and increased competition are two likely factors contributing to the change.

Spotify has a lot of developments on the horizon that the company hopes will raise the growth rate, including additional podcast content and a device for automobiles that will eliminate the need for terrestrial radio in vehicles. You can learn more about the device, which has been dubbed the ‘car thing,’ in the Music Biz News clip below.

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What is the ‘Spotify Sound,’ and how is it changing music?

Spotify has changed the music business in many ways, including a few that you may have never considered.

There are many streaming services in the world, but none of them can compare to the size and influence of Spotify. With more than one-hundred million subscribers, the Swedish based company has nearly double the audience of its closest competitor (Apple Music). The company has grown so popular, in fact, that it has become a kind of shorthand for streaming music. People say, “Do you use Spotify,” instead of, “do you subscribe to a streaming music platform?”

Spotify has revolutionized how artists make money from their music. The company pays, on average, between $0.006 and $0.0084 per song stream. A single stream is counted when the listener has played thirty-seconds of the track. If the listener finishes the song, that’s great, but it doesn’t change the amount of money the stream earns for the artist.

With this in mind, it’s easy to understand why many industry experts claim Spotify has changed the sound of music. The ‘Spotify Sound,’ as it has been dubbed, refers to artists who waste no time getting to the heart of their song. The days of lengthy introductions or slow-burning tracks has been replaced by immediate choruses or other attention-grabbing tactics.

Another element of the ‘Spotify Sound’ is the length of a song, which again is a result of the company’s approach to compensating talent. If a play is counted after thirty-seconds of listening time, then artists are not incentivized to make longer songs. The more financially informed approach would be to record more material that is shorter, thus earning more money. A five-minute song earns as much as a two-minute song, but listeners can play multiple two-minute songs in the same amount of time, which means they can earn more money.

A glance at the Spotify and Billboard charts shows the impact of the company’s influence. “Old Town Road,” which has spent three months topping charts, is less than two minutes in length. The remix, which helped catapult the song into the pop stratosphere, runs just over two and a half minutes long.

Artists who have adapted to the influence of the ‘Spotify Sound’ are seeing success on the platform. In a recent digital feature from PBS, two members of the group Frenship credited their efforts to match the changing trends for the success they found with their hit “Capsize.” Check it out:

Other platforms have different rules for what counts as a play. Some services require a certain percentage of the song to be enjoyed before a play is counted, while others have a higher minimum for time spent listening. Both methods of counting plays encourage the same thing. Artists should make shorter, catchier songs if they want to earn big from streaming services.

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Netflix needs music, but music doesn’t need Netflix

The streaming wars are upon us, and Netflix needs to take action before a competitor steals one of the biggest niche audiences.

After years of streaming domination, Netflix finds itself in a war for subscriptions, and music may have the answer.

Netflix is at a crossroads. For more than a decade, the entertainment company has reigned supreme over the world of film and television. Specifically, Netflix has been the leader in streaming content for longer than virtually any of its competitors have existed, but that may soon change. A new crop of streaming platforms are rising, with many owned or largely controlled by the companies that once relied on Netflix to stream its content online.

A quick Google search for new streaming platforms will shed more light on the state of video in 2019. In addition to Hulu and Amazon Prime, which have been gaining ground on Netflix for years, Disney, Warner Bros, DC Comics, Apple, and more have or are preparing streaming platforms of their own. Disney’s product, Disney+, will offer every Marvel movie, Star Wars Film, and Disney original for less than the current cost of a monthly subscription to Netflix. The house that Mickey Mouse built will also pull all its content from Netflix when the platform launches, which is likely what all the other studios will do when their services go live in the months and years to come as well.

That impending change has put more pressure on Netflix to create original content that justifies its rising cost and shrinking library. The company has invested millions into original series with mixed results, but it has found a lot of success through its embrace of stand up comedy. Be it Chris Rock, Amy Schumer, or Joe Rogan, the biggest names in comedy have made Netflix their home, and the company has reaped the benefits of having fans of the art form flock to the platform for fresh content weekly.

Netflix may find similar success through music. After leaving the music industry mostly untouched for the last several years, Netflix made waves in the industry by releasing Taylor Swift’s concert film for her Reputation stadium tour and Springsteen On Broadway at the end of 2018. That release was followed in April with the debut of Beyonce’s Homecoming concert film documenting her now legendary performance at Coachella. Both films were exclusive to Netflix, and each made it possible for millions of fans around the world to witness events they otherwise could not see.

This month, Netflix has taken its relationship with music further by releasing a Martin Scorsese documentary on Bob Dylan and announcing the exclusive premiere of Radiohead frontman Thom Yorke’s new short film. That latter is particularly exciting because it is intended to pair with Yorke’s new solo album, which means Netflix is playing an active role in supporting new music rather than celebrating things that have already happened.

Where Netflix goes from here with music is up in the air, but the company would be wise to continue investing in and aligning itself with musical talent. The live entertainment industry is booming, but no consumer is able to see everything or even a fraction of everything they want to see in a given year. Netflix has the ability to support artists while also helping them engage with fans who otherwise cannot see them live or get to know them behind-the-scenes.  

That said, Netflix needs to hurry if they want to claim reign over music as they have the world of comedy. Amazon Prime released an original film from Donald Glover, otherwise known as Childish Gambino, earlier this year. Amazon also released a Jonas Brothers documentary days before the group’s recent album, Happiness Begins, hit stores. Apple has not announced any music projects for their upcoming video streaming service, but it’s not hard to imagine the exclusive video content made for Apple Music will also appear on that platform.

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Spotify’s new Storylines feature looks like Instagram Stories for musicians

Spotify is working to empower artists, and it’s coming after Instagram’s most popular feature along the way.

With over 100-million premium subscribers, Spotify is already the biggest streaming platform in music by a wide margin. That kind of lead allows the company to work on expanding other areas of its business, and that includes making the platform more social.

Now testing on iOS and Android devices, Spotify Storylines provide listeners with behind-the-scenes information about songs direct from artists. The information is presented like an Instagram Story, with a carousel of cards featuring a combination of text and images that you can tap through. Android Police notes that the feature is only available on a select number of songs right now, including Sucker by the Jonas Brothers, and a handful of songs by Billie Eilish.

Here’s a look at Storylines in action:

At the time of posting, Storylines are only available to The Jonas Brothers, and Billie Eilish, and not every mobile user can see the functionality. Spotify most likely approached the artists directly for their participation in the program, and as of right now, there are no public plans to roll the feature out to more talent.

That said, industry analysts have long predicted that Spotify would move into more social and editorial content. Storylines would give artists a direct line of communication to their listeners, and the possibilities that line presents are limitless. Artists can detail the story behind a song, promote a tour, promote recordings, or even provide steps to joining their official fan club.

In a statement, a spokesperson from the company said, “We are always testing new ways to create better experiences for more users,” but did not confirm when the feature would be released more broadly.

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Spotify crosses 100 million paid users milestone

The streaming war is far from over, but Spotify’s lead is growing with each passing day.

People are willing to pay for music. As funny as it sounds to hear that now, there was a time shortly after the dawn of the millennium where the industry wasn’t sure if that was still the case. The rise of digital piracy lead many to believe people were no longer willing to shell out cash to support recorded music, but premium streaming subscription services such as Spotify have proven that notion false.

This week, Spotify announced it has finally crossed the 100-million paid user mark during the first quarter of 2019. The streaming giant, which has long been the market leader for music consumption, added four million premium users in the three months ending March 31, a 4 percent spike quarterly and 32 percent over the previous year’s quarter. Ad-supported monthly active users now total 123 million, an increase of 6 percent on the quarter and 21 percent year over year. Overall, total monthly active users rose to 217 million in Q1, up 5 percent from the previous quarter and 26 percent year over year.

Spotify’s latest figures place the company’s total subscriber count at double that of its closest competitor, Apple Music. Apple CEO Tim Cook said in January that Apple Music hit 50 million subscribers at the end of last year.

Apple Music does, however, have a higher paid user count in the United States, which is the world’s largest market for music consumption. Apple Music is also growing faster in the US than Spotify. That growth may not be enough to overtake Spotify on a global scale, but it does show consumer preferences for streaming services are not yet set in stone.

Spotify’s advantage in the ongoing streaming war is its free tier. Apple Music requires a paid subscription, but Spotify allows over one-hundred million people a month to access its music library through a free tier that inserts advertisements in between songs.

Amazon Music, Deezer, Tidal, and other streaming services have subscription numbers far below that of Spotify and Apple Music. So much so, that bringing up their paid user count in this conversation feels pointless. Still, with the right innovations, it is possible for anyone to rise through the ranks and become the next leading streaming service. After all, there was a time when it seemed like Netflix would reign over video streaming forever, but the recent news of Disney+ and its low monthly cost has made many to believe the service is in jeopardy of losing its position as the market king.

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Pandora to test AI-powered interactive voice ads later this year

A world where you can communicate with advertiser in real time is right around the corner.

Have you ever wanted to respond to an ad while streaming content? Maybe you want more information, or perhaps you just want to explain why it’s not a good ad to you. Whatever the case, Pandora users may soon be able to talk back to the platform’s audio advertisements in real time, thanks to the power of AI.

That’s the idea behind Pandora’s new partnership with San Francisco-based, voice-enabled ad platform Instreamatic. With the agreement, Pandora will begin testing interactive voice ads later this year.

Traditional audio ads are not clickable. As a result, advertisers have never really know how consumers react to the ads they buy on platforms such as Pandora, Spotify, etc. Do they ignore the ads? Do they mute them? Do they make purchases?

Instreamatic’s software may be a solution. Once implemented, Pandora users will be able to react to ads as they play by asking for more information, requesting to not hear the ad again, or skipping the advertisement altogether. The insight provided will strengthen Pandora’s advertising algorithm, as well as provide advertisers with useful feedback about their campaigns.  Plus, the new audio ads could help Pandora reach listeners who may be unable to engage with visual ads while cooking, working out or doing other activities. 

“The age of voice has arrived, yet there’s remained a stark need for meaningful consumer engagement — and measurable metrics — in the audio ad space,” said Stas Tushinski, Instreamatic.ai CEO, in a release. “We believe provides the ideal ad platform to serve this marketplace.”

The technology goes further than recognizing “yes” and “no” responses to prompts in advertising. Instreamatic’s AI functionality can study, interpret and understand user intent, and the platform will continue to learn and increase its vocabulary and predictive power with every interaction.

“Voice interactivity has already changed the way consumers interact with brands on smart speakers, and we believe voice will change the very nature of the way consumers interact with brands on Pandora,” added Pandora’s VP of Product Engagement, Eric Picard. “We intend to foster an ecosystem of demand-side technology parties to scale voice ads and working with to support this capability has been a true joy.”

If the trials are successful, it is likely other streaming services will implement similar technology in the near future. After all, data is king, and the more consumer feedback available to advertisers will inevitably produce better, more specific ad campaigns. Better ads lead to increased sales, and increased sales lead to more ad buys. Everyone (involved) wins!

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Apple slams Spotify for ‘suing songwriters,’ Spotify fires back

The streaming war between Apple Music and Spotify is heating up.

Spotify has spent the past week coming under fire for its efforts to combat a proposed 44% rise in mechanical royalty rates. The streaming giant tried to distract from the controversy by introducing a new subscription bundle offering Hulu for free, but the music industry isn’t letting the company slide, and a statement posted to its blog earlier this week didn’t make matters any better.

Today, March 15, Apple issued a lengthy statement regarding Spotify. The comments were made in response to Spotify’s new complaint to the European Commission regarding Apple’s so-called ‘app tax,’ but the tech company also took shots at their competition’s war against raising royalty rates. 

“Just this week,” Apple wrote, “Spotify sued music creators after a decision by the US copyright royalty board required Spotify to increase its royalty payments. This isn’t just wrong, it represents a real, meaningful and damaging step backwards for the music industry.”

Elsewhere in the statement, Apple claims Spotify was masking its “financial motivations in misleading rhetoric about who we are, what we’ve built and what we do to support independent developers, musicians, songwriters and creators of all stripes,” but it did not substantively address Spotify’s claims or even mention the European Commission.

Those claims, which became public on March 13, were made against Apple’s ‘app tax’,  which sees the Cupertino company charge a 30% commission on in-app digital purchases via the iOS App Store. That percentage then falls to 15% in a streaming subscription’s second year.

Spotify co-founder and CEO, Daniel Ek, said: “If we pay this tax, it would force us to artificially inflate the price of our Premium membership well above the price of Apple Music. And to keep our price competitive for our customers, that isn’t something we can do.”

Elk added,  “Apple also routinely blocks our experience-enhancing upgrades. Over time, this has included locking Spotify and other competitors out of Apple services such as Siri, HomePod, and Apple Watch.”

Apple’s blog post on the situation denied Elk’s claims. “We’ve approved and distributed nearly 200 app updates on Spotify’s behalf, resulting in over 300 million downloaded copies of the Spotify app. The only time we have requested adjustments is when Spotify has tried to sidestep the same rules that every other app follows.”

Spotify, in a statement issued shortly before noon on Friday, fired back against Apple’s latest comments. A representative for the company said, “Every monopolist will suggest they have done nothing wrong and will argue that they have the best interests of competitors and consumers at heart. In that way, Apple’s response to our complaint before the European Commission is not new and is entirely in line with our expectations. We filed our complaint because Apple’s actions hurt competition and consumers, and are in clear violation of the law. This is evident in Apple’s belief that Spotify’s users on iOS are Apple customers and not Spotify customers, which goes to the very heart of the issue with Apple. We respect the process the European Commission must now undertake to conduct its review.”

The war between these two companies will likely continue for the foreseeable future. Follow HaulixDaily on Twitter and Facebook for more updates.

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