MediaNet

MediaNet Blog

Hard Questions About the ‘Revenue-Neutral Spotify’ Paper, and Other Top News

Posted by Glen Sears | November 2, 2015 1:15 pm | No Comments

spotify revenue neutral medianet soundcheck

Story of the Week

That Study on Spotify Everyone’s Talking About? It’s Wrong, and That’s Not Even the Point
The working paper — a collaboration between the National Bureau of Economic Research and the Institute for Prospective Technological Studies (a division of the Europen Commission’s Joint Research Center — was written by Luis Aguiar (of IPTS) and Joel Waldfogel (of the NBER and the University of Minnesota), received a great amount of attention after an article appeared on Slate on October 30. (Because it’s a working paper, it has not been peer reviewed and hasn’t been published.) It searches for a relationship between streaming and music industry revenues by examining Spotify streams, music piracy and music sales across multiple countries.

The study was unable to differentiate between Spotify’s free and premium tiers. It’s possible free streams affect track sales differently than streams by subscribers. What’s more, it’s possible — as some labels allege — that Spotify’s unlimited free tier, supported by advertisements and meant to encourage listeners to upgrade to the premium service, discourage listeners from becoming subscribers. (Spotify would undoubtedly argue differently.)

“In other words, we don’t know which portion of any lost revenue in the sales market could be attributed to Spotify, exclusively,” Touve writes. “And yet, the… paper essentially treats the situation as if the entirety of any decrease in unit sales can be explained by adoption of Spotify alone.”
Read more on Billboard: http://bit.ly/1P6uZ8U

Other Top News

Deezer Abandons IPO Plans – Apple Music’s damage to Pandora contributed to Deezer’s decision Tuesday to pull its initial public stock offering. Read More

YouTube Red Is Now Live! – Creators To Be Paid During Free Trials – Google’s YouTube launched its paid video and music subscription service today. YouTube Red ad free $9.99 per month subscriptions extend across devices and platforms. Read More

Apple Music By The Numbers [Mark Mulligan] – Apple CEO Tim Cook recently announced that Apple Music has 6.5 millions paid subscribers. While a promising figure on its face, it seems unlikely that all these listeners will continue paying past the first month. This article breaks down Apple Music’s most recent statistics, offering us some idea of where the streaming service is headed financially. Read More

European Parliament Rejects Net Neutrality Protections – Proponents of net neutrality suffered a major setback Tuesday when European politicians voted against enshrining in law the concept of treating all online data equally. Read More

SXSW Responds to Panel Cancellation Backlash, Announces Day-Long Summit – “By canceling two sessions we sent an unintended message that SXSW not only tolerates online harassment but condones it, and for that we are truly sorry. While we made the decision in the interest of safety for all of our attendees, canceling sessions was not an appropriate response… It is clear that online harassment is a problem that requires more than two panel discussions to address. To that end, we’ve added a day-long summit to examine this topic.” Read More

Could Adele Be The Last Hurrah Of The Album Era? – As the listening public waits with bated breath for the release of Adele’s upcoming album ’25,’ the question is being raised as to how much longer even superstar artists like Adele can expect to achieve blockbuster success when it comes to selling their albums. Read More

Follow MediaNet! – Facebook | Twitter | LinkedIn | Medium

Have questions about how Medianet can help your digital music business? Ask us here. Want a topic or insight published on this blog? Ask us here. Other questions or comments? Let us know!

No Comments

No comments yet.

Sorry, the comment form is closed at this time.

The MediaNet Blog

Insights, News, Announcements, and Updates on MediaNet and the ever-changing world of music, technology, industry, and law.

Get Weekly Music News Updates Directly To Your Inbox!

Recent posts

SoundCloud Rescued and Installs New CEO, TIDAL Names New CEO Too, Amazon Eyes U.S. Ticketing
August 14, 2017
SoundCloud Speculation Continues, Apple Courting Indian Music Company, Sony Music Has Huge Q1
August 7, 2017
SoundCloud May Have New Equity Deals, YouTube Red Merging with Google Play, SESAC Strikes U.S. Radio Deal
July 31, 2017

Archive

Categories

Powered by WordPress