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Music News Recap: Rhapsody Revenue & Losses, No Tidal Buyout, YouTube Star Not “Fair Use”

Posted by Glen Sears | March 7, 2016 10:22 am | No Comments

rhapsody music streaming 2015 finanicials

Story of the Week

Rhapsody Next Streaming Service to Pair Big Revenue Growth With Big Losses
Like many other streaming services, according to its 2015 financials Rhapsody has conformed to the “bigger revenues/bigger losses” streaming music growth model. The numbers, published by RealNetworks as part of its financial report, show Rhapsody’s revenues rose from $173.5M in 2014 to $202M in 2015 – growth of 16.4%. However, its net losses rose from $21.3M in 2014 to $35.5M in 2015, representing a 66.3% increase year-on-year.

This came as Rhapsody’s subscriber base grew by 45% in 2015, revealed in February in RealNetworks’ last earnings call – the company still holds a 43% stake in Rhapsody. Rhapsody reached 2M subscribers in July 2014 and 3M in July 2015. It’s thus reasonable to suggest that it had around 2.5M at the end of 2014, with 45% growth in 2015 indicating around 3.6M by the end of that year.

With Rhapsody, Spotify, Soundcloud, and others all posting major losses, and their competitors can absorb streaming losses with their income from device sales, advertising and e-commerce…2016 might be the year to talk more about what it means to succeed in streaming long term.

Read the full story on Music Ally.

Top Music News Stories

Samsung Says It Is Not Buying Tidal. “The rumor of Samsung acquiring Tidal is not true,” said Samsung spokesperson, breaking the company’s silence on the matter. This comes after months of reports about conversations between the two companies.

What If Google Really Buys Spotify? Spotify’s recent announcement that they will move to Google’s cloud platform sparked speculation that Google may want to acquire Spotify, raising the question about the benefit to Google, and what it would mean for Spotify’s future.

Tidal Fires Two Top Executives. In a statement provided to Billboard, reps for Tidal pointed to the company’s growing aspirations around the world as the main reason why the streaming service is shifting its top executive brass out of its Oslo, Norway European headquarters.

Patreon Allows Users to Respond To DMCA Notices Before Content is Removed. Patreon – at their own personal risk – is now giving users a 48 hour window in which to take corrective action before pulling the content themselves.

Juror Says YouTuber’s Incorporation of Unlicensed Clips Is Not Fair Use. “The jury came back with a unanimous ‘no’ on each count, no fair use,” the juror said. “We just didn’t feel that the videos were transformative enough to count for fair use.”

Spotify Introduces “Fresh Finds” Tastemaker-Generated Playlists. Spotify’s algorithm combines early buzz across blogs and music sites with billions of listening hours on Spotify, identifying the listening patterns of tastemakers that already uncover up-and-coming music.

Bandsintown Has Added 8M New Registered Users in the Last Year. Its number of monthly new signups grew from 500,000 in 2015 to 700,000 in early 2016, buoyed by the popularity of theBandsintown app for iOS and Android, which received a major update in December.

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