Domain: musicbusinessworldwide.com
Stories and comments across the archive that link to musicbusinessworldwide.com.
Stories · 19
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The Mystery Tracks Being 'Forced' on Spotify Users (musicbusinessworldwide.com)
It's been nearly two years since news blog MusicBusinessWorld kicked off a global conversation over 'fake artists' on Spotify. That debate is about to roar back into life. From a report: Multiple Spotify users have been complaining that their official listening history on Spotify appears to have been infiltrated by acts that they don't simply recognize. The trend was spotted by the BBC, which reported on Friday that plays of 'mystery' tracks from artists such as Bergenulo Five, Bratte Night, DJ Bruej and Doublin Night were being credited within individual Spotify user accounts -- despite these same users knowing nothing about this music.
"Apart from being musically unremarkable, they generally have a few things in common: short songs with few or no lyrics, illustrated with generic cover art, and short, non-descriptive song titles," said the Beeb of these acts -- some of whom had managed to rack up tens of thousands of plays. Albums from these artists contained more than 40 songs apiece, with each track just a minute or two in duration. After the BBC alerted Spotify to the trend, all of these artists disappeared from its platform entirely. -
The Mystery Tracks Being 'Forced' on Spotify Users (musicbusinessworldwide.com)
It's been nearly two years since news blog MusicBusinessWorld kicked off a global conversation over 'fake artists' on Spotify. That debate is about to roar back into life. From a report: Multiple Spotify users have been complaining that their official listening history on Spotify appears to have been infiltrated by acts that they don't simply recognize. The trend was spotted by the BBC, which reported on Friday that plays of 'mystery' tracks from artists such as Bergenulo Five, Bratte Night, DJ Bruej and Doublin Night were being credited within individual Spotify user accounts -- despite these same users knowing nothing about this music.
"Apart from being musically unremarkable, they generally have a few things in common: short songs with few or no lyrics, illustrated with generic cover art, and short, non-descriptive song titles," said the Beeb of these acts -- some of whom had managed to rack up tens of thousands of plays. Albums from these artists contained more than 40 songs apiece, with each track just a minute or two in duration. After the BBC alerted Spotify to the trend, all of these artists disappeared from its platform entirely. -
A Look at How One of the Largest Record Companies in the World Once Owned Rockstar Games and Sold it For a Pittance (musicbusinessworldwide.com)
Question: what is entertainment's highest-grossing weekend debut of all time? Hint: It only took place two weeks ago. From a report: It was claimed by a Western-themed video game called Red Dead Redemption 2 -- the second in a series dubbed 'Grand Theft Auto on horseback' -- which generated over $725m in just three days. The wording above ('highest-grossing weekend debut') has been carefully chosen. Because the highest-grossing entertainment launch of all time actually kicked off on a Tuesday, in September, 2013. That launch was Grand Theft Auto V, another video game, which grossed more than $1bn during its opening 72 hours on sale. Both Red Dead Redemption and Grand Theft Auto are made by Rockstar Games -- a New York-HQ'd interactive entertainment company famed for its ability to bring filmic sophistication to the world of PlayStations and Xboxes, and for its ability to generate billions upon billions of dollars by doing so.
Ready for this? The Grand Theft Auto franchise, and the core team behind Rockstar's success, were, unbelievably, both once part of the music business. They were allowed to leave 20 years ago. For an absolute pittance. Let's rewind. Back in 1990, London-born Sam Houser, aged 19, landed a dream first job -- working in the post-room at BMG's UK HQ. Houser then supplemented his university studies by continuing to work at BMG for the next four years, focusing on pop music videos and VHS releases. By 1994, he'd graduated, and took a full-time role within BMG's new interactive entertainment division. Houser, it turned out, had a natural talent for 'A&R'ing' video games -- spotting titles that would sell big and signing them up as a label would an artist -- and, by 1996, he was named Head of Development at BMG Interactive in the UK. Got your palm located somewhere roughly near your forehead? Good. Prepare for the two to forcibly meet.
Interactive released Grand Theft Auto, a 2D action-adventure game, which saw players fulfilling the objectives of criminal overlords across three cities. The title was a commercial smash in the US and Europe -- yet it emerged amid serious corporate turbulence. In March 1998, convinced that its foray into video games had been a waste of time and money, BMG -- under the instruction of owner Bertelsmann -- agreed to sell off BMG Interactive. According to Sam Houser, BMG let the company go, to New York-based Take Two Interactive, for a total consideration of $9m. (For those who can see where this narrative is going: Red Dead Redemption 2 generated that $9m back within an hour of going on sale last month.) The story doesn't end there. -
Tidal Is Reportedly Months Behind On Royalty Payments To Labels (theverge.com)
According to a report from Dagens Naeringsliv, streaming service Tidal is "behind with payments directly to the three major international record companies." The claim is backed up by two executives from a label and its Sony-owned distributor. They say they have not seen royalty payments in over six months. The Verge reports: According to a translation by Music Business Worldwide, Sveinung Rindal, CEO of distribution company Phonofile (a Sony subsidiary), told the Norwegian paper, "It is correct that there are delays in payments from Tidal," while Frithjof Boye Hungnes, CEO of Propeller Recordings, confirmed, "We have not been paid since October ... People are talking about withdrawing [their music from Tidal]; I think there is a pretty upset mood." Last December, a separate report from the same newspaper said that Tidal was running out of money, suggesting that it only had about six months of working capital left. The news comes shortly after the service was accused of faking the streaming numbers for Kanye West and Beyonce. Tidal is denying any such wrongdoings, saying: "We have experienced negative stories about Tidal since its inception and we have done nothing but grow the business each year." -
Jay-Z's Tidal Accused of Faking Kanye West, Beyonce Streaming Numbers (qz.com)
Subscription music service Tidal has been accused of faking the streaming numbers for Kanye West and Beyonce. "Kanye West's 'The Life of Pablo,' which was the first album to go platinum primarily from streaming, and Beyonce's platinum record 'Lemonade' were released exclusively on Tidal for periods in 2016," reports Quartz. "By placing their albums on the fledgling platform, which was relaunched in 2015, both artists risked losing big paychecks." From the report: West's album was said to have been streamed 250 million times in the first 10 days on the service. And Beyonce's record was reportedly played 306 million times in 15 days. While it's not hard to believe Bey and Yeezy could hit those numbers, they rang false to some, as Tidal said it had 3 million members then. However, according to an in-depth investigation by Norwegian newspaper Dagens Naeringsliv (DN), Tidal has reportedly manipulated those streaming numbers, to potentially make the company appear more profitable or increase royalty payments to the artists at the expense of others on the service. This is something Tidal vigorously denies and says the DN report is part of a "smear campaign."
The DN's report investigated streaming numbers since 2017, when it reportedly obtained a hard drive of internal Tidal data with more than 1.5 billion of rows of user play logs. Those logs were from two periods -- from late January to early March, and mid April to early May -- totaling 65 days in 2016. Its reporters tracked down subscribers from the logs, and presented them with their apparent listening history, which the users said didn't add up. "We have through advanced statistical analysis determined that there has in fact been a manipulation of the data at particular times. The manipulation appears targeted towards a very specific set of track IDs, related to two distinct albums," found the researchers (pdf) at NTNU's Center for Cyber and Information Security. "The manipulation likely originates from within the streaming service itself." -
Spotify Denies Allegations It's Putting Fake Artists On Popular Playlists To Cut Costs (factmag.com)
Last year, music industry publication Music Business Worldwide (MBW) claimed Spotify was putting fake artists in some of its popular playlists. The publication listed 50 artists it claimed were not real. Why would they do such a thing? To keep royalty costs down. MBW claimed that Spotify "was asking producers to create music to specification and paying them a flat fee to own the track outright," reports FACT Magazine. "These tracks -- which MBW alleged were being used to bulk up numbers on ambient, chillout and piano playlists -- are said to be owned by Spotify so that the company could circumvent royalty payments on playlists that have millions of subscribers." From the report: The claims were brought to wider attention by a feature published by Vulture last week, which picked out acts called Deep Watch and Enno Aare as examples of "fake artists" that had racked up two million and 15 million streams despite having no public profile. In a statement given to Billboard last week, Spotify refuted the allegations made by both MBW and Vulture. "We do not and have never created 'fake' artists and put them on Spotify playlists," the company said. "Categorically untrue, full stop. We pay royalties -- sound and publishing -- for all tracks on Spotify, and for everything we playlist. We do not own rights, we're not a label, all our music is licensed from rightsholders and we pay them -- we don't pay ourselves. We do not own this content -- we license it and pay royalties just like we do on every other track." In a piece published yesterday, MBW challenged Spotify's statement, citing anonymous sources in the music business who claimed that the practice has been going on for a "long time." -
Spotify Denies Allegations It's Putting Fake Artists On Popular Playlists To Cut Costs (factmag.com)
Last year, music industry publication Music Business Worldwide (MBW) claimed Spotify was putting fake artists in some of its popular playlists. The publication listed 50 artists it claimed were not real. Why would they do such a thing? To keep royalty costs down. MBW claimed that Spotify "was asking producers to create music to specification and paying them a flat fee to own the track outright," reports FACT Magazine. "These tracks -- which MBW alleged were being used to bulk up numbers on ambient, chillout and piano playlists -- are said to be owned by Spotify so that the company could circumvent royalty payments on playlists that have millions of subscribers." From the report: The claims were brought to wider attention by a feature published by Vulture last week, which picked out acts called Deep Watch and Enno Aare as examples of "fake artists" that had racked up two million and 15 million streams despite having no public profile. In a statement given to Billboard last week, Spotify refuted the allegations made by both MBW and Vulture. "We do not and have never created 'fake' artists and put them on Spotify playlists," the company said. "Categorically untrue, full stop. We pay royalties -- sound and publishing -- for all tracks on Spotify, and for everything we playlist. We do not own rights, we're not a label, all our music is licensed from rightsholders and we pay them -- we don't pay ourselves. We do not own this content -- we license it and pay royalties just like we do on every other track." In a piece published yesterday, MBW challenged Spotify's statement, citing anonymous sources in the music business who claimed that the practice has been going on for a "long time." -
The Problems Apple Music Needs To Fix Before Launch
journovampire writes: In less than two weeks, Apple Music arrives for consumers, but it still has some serious problems. Many in the industry are predicting the biggest digital music launch in history, but Apple hasn't even achieved its primary stated goal of de-fragmenting the music market. To illustrate, the article points out that Apple Music catalog is currently missing the current most popular artist (Adele), the most popular artist of the past decade (Taylor Swift), and the most popular artist of all time (The Beatles). The company is also promising a three-month free trial period. Great for customers, but not great for musicians, who won't see a dime from that trial, regardless of how much their music is being played. Apple has likely made you-scratch-my-back deals with the major publishers, but indies have no bargaining power. They've been hesitant to jump on board, and that only decreases the selection. Add to that the complications by DRM, Apple Connect, and the new service flat out not working on some music devices (competitors to Apple, now that they own Beats), and you have a recipe for yet another troubled streaming site. -
Apple Will Pay More To Streaming Music Producers Than Spotify -- But Not Yet
Reader journovampire supplies a link to Music Business Worldwide (based on a re/code report) that says Apple's new Apple Music service, after a trial period during which the company has refused to pay royalties, is expected to pay a bit more than 70 percent of its subscription revenue out to the companies supplying it, rather than the 58 percent that some in the music industry had feared. Notes journovampire: "If 13% of iOS device users in the world paid $9.99-per-month for Apple Music, it would generate more cash each year than the entire recorded music biz manages right now." -
Steve Albini: The Music Industry Is a Parasite -- and Copyright Is Dead
journovampire sends word of another thought-provoking rant from Steve Albini (mentioned here last a few years back for his paean to the beauty of analog tape for recording): The veteran producer addressed an audience in Barcelona on Saturday: "The old copyright model – the person who creates something owns it and anyone else that wants to use it or see it has to pay them – has expired." -
How Spotify Can Become Profitable
journovampire writes: Spotify just posted another big net loss, but it can become profitable with some specific changes according to one analyst. He suggests the following three options: Cut royalty costs to the music industry, freeze expenditure year-on-year, and what seems like the least likely option, somehow make free users pay $1 every three months. He points out: "if Spotify’s current free user base just paid €1/£1/$1 every three months, it would be a profitable company." -
Pandora Paying Artists $0.0001 More Per Stream Than It Was Last Year
journovampire writes: Pandora has revealed that it's paying a 10,000th of a dollar more to music labels and artists than it was in 2014. From the article: "Pandora has revealed that its royalty payments to SoundExchange, the US licensing body which collects performance royalties on behalf of record labels and artists, have just increased by 8%. The news was confirmed in a call with investors following Pandora’s Q1 fiscal results announcement on Thursday (April 23), in which it posted a three-month net loss of $48.3m. In what Pandora CEO Brian McAndrews called a scheduled annual step-up, Pandora has from January 1 been paying out an average $0.0014 per ad-funded stream and $0.0024 per premium stream to SoundExchange." -
That U2 Apple Stunt Wasn't the Disaster You Might Think It Was
journovampire writes with this interesting bit about the fallout of U2's partnership with Apple. "Remember U2's album giveway with Apple at the end of last summer? And how the world seemed to become very annoyed that its contents had been "pushed" to their devices without permission? Well, the naysayers might have been loud – but that hasn't stopped the stunt having a lasting effect on the band's popularity. That’s according to new research from retail insight experts Kantar in the US, which shows that nearly a quarter (24%) of all US music users on iOS devices in January listened to U2, nearly five months after Songs Of Innocence was released for free onto 500m iPhones across the world. In a survey of iOS users, Kantar found that more than twice the percentage of people listened to U2 in January than listened to the second-placed artist, Taylor Swift (11%)." -
Pandora Pays Artists $0.001 Per Stream, Thinks This Is "Very Fair"
journovampire writes with this story about how much artists make on Spotify. "Pandora founder Tim Westergren has claimed that the company is paying out 'very fair' sums to artists, despite its per-stream royalty weighing in at just one sixth of Spotify's. The digital personalized radio platform has previously gone on-record as saying that it pays music rights-holders approximately $0.0014 for each play of their tracks: Westergren blogged in 2013 that Pandora pays ‘around $1,370 for a million spins’. That’s around 80% smaller than Spotify’s per-stream payout, which officially stands somewhere between $0.006 and $0.0084." -
Major Record Labels Keep 73% of Spotify Payouts
journovampire sends this report: New record company figures out of France suggest that artists are being paid just 68 cents from every €9.99 monthly music streaming subscription – as major labels keep hold of 73% of payouts from the likes of Spotify. They’re followed by writers/publishers with a 16% share, and then artists – mostly paid by their labels – who get 11%. -
Music Doesn't Feature In the Pirate Bay's Top 100 Biggest Torrents
journovampire writes Good news for the industry's anti-piracy efforts? Or rather embarrassing for music's appeal in the big, wide world? No single music release features in the Top 100 most-torrented files. From the article: "MBW has analysed TPB’s Top 100 most-pirated files in the 48 hours since its re-emergence. And although you’ll find plenty of movies and a smattering of porn in there, you won’t see a single music release. The Top 4 most-pirated files over the weekend were all movies, led by new Jason Statham vehicle Wild Card. It was followed by three more Hollywood releases – The Interview, American Sniper and Nightcrawler." -
Radio, Not YouTube, Is Still King of Music Discovery
journovampire writes: We might live in an age of YouTube and Spotify being the go-to music players of teenagers, but radio was still the top method of music discovery in the U.S. last year. According to the research, "59% of music listeners use a combination of over-the-air AM/FM radio and online radio streams to hear music," and "243 million U.S. consumers (aged 12 and over) tune in each week to radio – 91.3% of the national population tuning in across more than 250 local markets." -
How Long Will It Take Streaming To Dominate the Music Business?
journovampire writes with this story about the booming music streaming business. "Streaming is on course to make more money for the U.S. music business than downloads and physical sales combined within the next three years. The U.S. appears poised for streaming to become its most valuable music format in either 2016 or 2017, according to MBW forecasts – so long as you include SoundExchange royalties generated by digital radio platforms like Pandora alongside subscription and ad-supported platforms like Spotify. But in the other three biggest recorded music markets in the world – France, Germany and Japan – the public appears more hesitant to allow streaming to take over." -
Vinyl's Revival Is Now a Phenomenon On Both Sides of the Atlantic
New submitter journovampire sends this report about the resurgence of vinyl: Vinyl album sales smashed records on both sides of the Atlantic in 2014, as a format that recently seemed on its last legs hit astonishing new heights. ...n the UK in 2014, vinyl album sales totaled of 1.3m – six times bigger than its tally just five years earlier (2009). In fact, 2014 represented the most vinyl albums sales in the UK since 1995 – nearly 20 years ago. In the U.S., vinyl sales have quadrupled in the past five years, narrowly missing out on a 10m sales milestone in 2014. Amazingly, the year’s 9.2m vinyl sales haul is the biggest since Nielsen Soundscan records began in 1993 – by some distance.