Audius - Singer Backed Spotify Rival

[Dylan :)]

Katy Perry, Nas, and Jason Derulo Are Investing Big in a Spotify Rival

Artist investors include Katy Perry, Nas, The Chainsmokers, Jason Derulo, Pusha T, Steve Aoki, Linkin Park’s Mike Shinoda, and Disclosure. Mountain-moving executives from different sectors of the music industry are also shelling out: They include Martin Bandier, who ran Sony/ATV Music Publishing as its chairman and CEO for 11 years; Guy Oseary, Madonna and U2’s longtime manager, via an investment firm he launched with Ashton Kutcher called Sound Ventures; Michael Kives, founder/CEO of investment firm K5 Global, who also used to be a talent rep for the likes of Perry, Kate Hudson, Bruce Willis, and Arnold Schwarzenegger; and Hitco Entertainment founder and Bahamian recording studio owner Charles Goldstuck, who previously co-founded J Records with none other than Clive Davis, and helped build it into RCA Records.

[Clode]

Well this is interesting, Audius is an entirely new streaming service so I will be curious to know if now with all of these Music artists investing in this new competitor and some Music executives likewise doing the same if this means that Audius is going to end up growing significantly in Popularity.

[Dylan :)]

The most interesting thing to see is will these artists remove their songs from Spotify

[iHype.]

So another Tidal.

The paid streaming market (especially in North America/Europe) seems pretty much near its full capacity. Everyone in September 2021 for the most part is already paying for a music streaming service.

It's too late for another service unless they can actively have a huge advantage that would make it worth it for someone to unsubscribe and move their library from their current service of choice. Simply trying to sell off an "artist backed streaming service" idea couldn't even work with Tidal in 2015 when the paid streaming market was brand new and they had much more heavy weight names behind it.

[Caviar]

This already comes across less pretentious than Tital. Hope it does well.

[YourFaveIsAFlop]

It won't. There is zero market space for a streaming service to break out in the current environment. The labels are content with their Apple Music & Spotify agreements, they're not going to jump ship on a startup just because *checks notes* the founder of a record label that folded 10 years ago invested some money in it.

[Choco]

None of these acts are even thinking of removing their catalog from the popular services either. This is a poor idear.

[Ty]

I feel like once Spotify reaches its limit for user growths, it will try to profit on existing users by raising the price, which leads to user loss. So it's not an impossible task, as long as this (or any other new music streaming platform) can come up with a smarter business model towards profitability.

[Au$tin]

Oct 8, 2021 14:53:35 GMT -5 Ty said:

I feel like once Spotify reaches its limit for user growths, it will try to profit on existing users by raising the price, which leads to user loss. So it's not an impossible task, as long as this (or any other new music streaming platform) can come up with a smarter business model towards profitability.

Simple: Apple Music. If Spotify ever gets to that point, all AM has to do is say "well, we aren't doing that" and the switch will come in droves. Apple can afford to do that since they have a billion other ventures bringing in profit. Spotify's only investment is the streaming service. Spotify desperately needs to expand in the coming years to something else so they're not totally reliant on subscriptions to fund their company.

As for this Audius company, I like the idea of another steaming service player entering the market, but the market is so saturated at this point (Apple, Spotify, Tidal, YouTube, Amazon, Deezer, etc.) I don't see it taking off unless some other already established company gets involved, like say Bose or JVC wanted to get into the streaming market.

[YourFaveIsAFlop]

Oct 8, 2021 14:53:35 GMT -5 Ty said:

I feel like once Spotify reaches its limit for user growths, it will try to profit on existing users by raising the price, which leads to user loss. So it's not an impossible task, as long as this (or any other new music streaming platform) can come up with a smarter business model towards profitability.

They're nowhere near the limit though. You can already see the streaming companies putting the screws on ad supported accounts. They make it so onerous that nobody is going to continue to use the "free" tier. You follow that up with practically unnoticeable rate increases ($1, $2, nobody is cancelling over that. Netflix does it all the time) The danger to Spotify isn't user max out, it's the label exclusivity. Once the current licensing agreements run out and Apple Music gets Labels A, B, and C, and Amazon gets A, D and E, and Spotify gets A and C and E and all the indies, things will get interesting. You can see that happening the TV/movie streaming market now with property owners launching proprietary services in house that keep their IPs off Netflix and Prime.

[bat1990]

My vinyl collection will GROW if the licensing for different labels and venture capital firms becomes exclusive to a particular service.

That will also drive piracy again.

[vithor]

Oct 12, 2021 10:48:40 GMT -5 YourFaveIsAFlop said:

Oct 8, 2021 14:53:35 GMT -5 Ty said:

I feel like once Spotify reaches its limit for user growths, it will try to profit on existing users by raising the price, which leads to user loss. So it's not an impossible task, as long as this (or any other new music streaming platform) can come up with a smarter business model towards profitability.

They're nowhere near the limit though. You can already see the streaming companies putting the screws on ad supported accounts. They make it so onerous that nobody is going to continue to use the "free" tier. You follow that up with practically unnoticeable rate increases ($1, $2, nobody is cancelling over that. Netflix does it all the time) The danger to Spotify isn't user max out, it's the label exclusivity. Once the current licensing agreements run out and Apple Music gets Labels A, B, and C, and Amazon gets A, D and E, and Spotify gets A and C and E and all the indies, things will get interesting. You can see that happening the TV/movie streaming market now with property owners launching proprietary services in house that keep their IPs off Netflix and Prime.

You know, in the playlisting era, I just don't see that happening. It works for TV, because you sit down for at least an hour to watch an episode of something or a movie, but can you imagine the madness of switching apps every 5 minutes so you can actually get the chance to listen to everything you want? You want to listen to one song by Katy Perry, Drake, My Chemical Romance and Kacey Musgraves, but each one's available on a different platform!

[YourFaveIsAFlop]

Oct 12, 2021 16:06:07 GMT -5 vithor said:

Oct 12, 2021 10:48:40 GMT -5 YourFaveIsAFlop said:

They're nowhere near the limit though. You can already see the streaming companies putting the screws on ad supported accounts. They make it so onerous that nobody is going to continue to use the "free" tier. You follow that up with practically unnoticeable rate increases ($1, $2, nobody is cancelling over that. Netflix does it all the time) The danger to Spotify isn't user max out, it's the label exclusivity. Once the current licensing agreements run out and Apple Music gets Labels A, B, and C, and Amazon gets A, D and E, and Spotify gets A and C and E and all the indies, things will get interesting. You can see that happening the TV/movie streaming market now with property owners launching proprietary services in house that keep their IPs off Netflix and Prime.

You know, in the playlisting era, I just don't see that happening. It works for TV, because you sit down for at least an hour to watch an episode of something or a movie, but can you imagine the madness of switching apps every 5 minutes so you can actually get the chance to listen to everything you want? You want to listen to one song by Katy Perry, Drake, My Chemical Romance and Kacey Musgraves, but each one's available on a different platform!

I could easily see every service end up with something like Amazon Music's Prime vs paid tier. You'll get access to 1 or 2 songs from an album but if you want the whole thing you'll have to subscribe as a paid member. Either way, ad supported "free" music is going away eventually. It just doensnt generate enough revenue

[Ty]

On a separate note, does TikTok pay artists on behalf of its users for using those slips of their music (similarly, the stories function on Instagram)?