Spotify Raises $526 Million As Apple Charges Into Streaming

[DEAD7]

Spotify has raised an enormous $526 million in funding to fight off Apple's new Apple Music subscription service. As part of the funding round, European carrier TeliaSonera is responsible for $115 million. The music service now has 20 million paying subscribers and 75 million monthly active users, doubling the subscriber base since May of 2014. The LA Times reports: "U.S. companies participating in the Spotify funding include Halcyon Asset Management, GSV Capital, D.E. Shaw & Co., Technology Crossover Ventures, Northzone and P. Schoenfeld Asset Management, said the person familiar with the matter, who was not authorized to comment publicly. British investment firms Baillie Gifford, Lansdowne Partners and Rinkelberg Capital, along with Canadian hedge funds Senvest Capital and Discovery Capital Management also took part. In a statement disclosing its investment, TeliaSonera said it would work with Spotify to come up with innovations in media distribution, customer insights, data analytics and advertising."

 

[Rekkapryde]

Spotify vs Beats .....


lol @ Tidal trying to ODB the stage

 

[cheek100]

So what exactly does this mean for tidal?

 

[Artificial Intelligence]

.......................

 

[stepbackj34spud]

Who the fukk cares? I'm tired of hearing about subscription based streaming music services.

The fukk.. I have my iPod, youtube and Google.. For FREE. I'm more than good.

 

[Maddmike]

Who the fukk cares? I'm tired of hearing about subscription based streaming music services.

The fukk.. I have my iPod, youtube and Google.. For FREE. I'm more than good.

I was like this until I took a music class that required spotify. I ended up keeping it cause its only 5 bucks a month for me til this day.

It's just convenient as hell in the long run to just think of a song, type it in and jam

 

[KillbertArenas]

I was like this until I took a music class that required spotify. I ended up keeping it cause its only 5 bucks a month for me til this day.

It's just convenient as hell in the long run to just think of a song, type it in and jam

youtube?

 

[Maddmike]

youtube?

Yea it would work but still not the same experience. Esp with all of my playlists as I travel alot. I got about 20 diffrent ones depending on my mood

 

[JetLife]

This means Spotify knows Apple is trying to just brute force outspend them and they'll need a gigantic war chest since streaming music under the current label structure is not a profitable business.

Apple didn't introduce anything game changing and they're not doing anything in terms of helping the artists out either in terms of payouts. For indies, they are at the exact same payout rate of 58% to the artist and 12% to the composer for subscription revenues.

http://www.digitalmusicnews.com/per...-of-streaming-royalties-back-to-indie-artists

At this point, it's just a race to get marketshare, and then once the old label structure dies off, whoever wins the streaming marketshare becomes the new label and can dictate terms.

Tidal still has a chance if they can somehow survive through Apple's massive push and then make all their "investor" artists music exclusive once their label contracts expire and they are truly free agents.

The only thing is ...

1. What Tidal-Owner artists (by the time they fulfill their contracts) will still be relevant and industry changing that their exclusives can make people switch? Outside of say Beyonce and Kanye ... I'm not seeing any crowd movers ... and the current exclusives haven't done much and only garnered them bad press from commoners.

2. At that point, will that even be enough? Sure Tidal can payout 2x the royalties ... but if the Apple or Spotify paid userbase is still bigger than them at a 20:1 ratio ... the higher royalty rate won't matter, the sheer volume of users at a shyttier payout rate trumps the higher royalty rate.

Tidal's best chance is for this to somehow become a 3 or 4 way race where the paid userbases are at least in the same ballpark so their higher royalty payout is actually economically a better choice for indie artists.

 

[Saint1]

I hope this doesn't start streaming service stanning.

 

[Liquid]

I hope this doesn't start streaming service stanning.

Why not? It encourages companies to work harder.

The Apple Music family plan could be very enticing...breaks down to $30 a YEAR if you can get 5 of your friends to paypal you the money.

 

[Medulla Oblongata]

Netease Music

 

[StatUS]

Still rocking with Google Music for $10 a month with Youtube Music Key.

 

[satam55]

I hope this doesn't start streaming service stanning.

It already started this week.

 

[Saint1]

Why not? It encourages companies to work harder.

The Apple Music family plan could be very enticing...breaks down to $30 a YEAR if you can get 5 of your friends to paypal you the money.

no stanning causes people to buy dumb shyt regardless of quality.