MBW Views is a series of exclusive columns written by notable music industry figures…who have something to say. The following content comes from Tim Ingham, founder of MBW. It first appeared in December in the latest issue (Q2 2024) of MBW’s premium quarterly sister publication Music Business UK, which is written for and about the UK market and is available exclusively to MBW+ subscribers.
Daniel Ek June dipped herself into hot water, tweeting “The cost of creating content [is] For modern music producers, it’s “close to zero.”
After outcry from musicians, I Apologized. “Obviously, I was too vague… including my clumsy definition of the content,” he wrote. “I understand this comes across as very simplistic, but that was not my intention.”
The uproar generated a slew of headlines, but it was entirely different Series of social posts from I The last few weeks have shocked me.
The above post was not offensive, financially insensitive, a lapse in judgment, or anything that might irritate the “spot” on X. These comments come from I Rehearsed, specified…pure propaganda.
I first noticed them in May. “It’s great to see more british artist Discovered on Spotify,” Ek wrote on LinkedIn. “In 2023 alone, U.K. artist Discovered 13 billion times!
I soon realized this wasn’t the first time I An interesting exclamation point, uncharacteristically, on this topic.
Two weeks ago, Ek wrote on LinkedIn in eerily similar prose: “Love to see Brazilian artist Continue to be a hit on Spotify! Just last year, listeners first discovered brazilian artist 10 billion times. [And] By 2023, Brazilian artists will generate more than BRL 1.2 billion in revenue through Spotify alone.
Turn the clock back a week and you’ll find Ek writing the following: “[Just] last year, Canadian artist Discovered over 3.8 billion times by first-time listeners. That’s really big!
what triggered Ike’s Sudden interest in (and gleefully celebrating) the success of domestic artists from these great countries?
he himself economic dangercertainly.
Early June, Canadian Radio-television and Telecommunications Commission (CRTC) Announced a new “streaming tax” on digital entertainment companies around the world, including Spotify, Apple Music and Netflix.
These platforms must contribute now 5% Their annual revenue in Canada goes towards programs that directly support local content creators. Subtext: say local artist Economically oppressed by the streaming economy, government intervention is needed to achieve a fair income.
Canada’s move follows similar incidents in France. Spotify and company. now forced to give up 1.2% A portion of the local annual revenue is used to fund music created by domestic artists.
In the reaction, Spotify has increased the price of land in the country tricolor flag.
So the obvious question is: are the international dominoes falling now? back Canada and Francewill we see a similar “streaming tax” soon? U.K.?
If so, you probably won’t hear too many complaints from UK rights holders – as long as they can squeeze millions more out of UK rights holders. Spotify Annual Treasury.
However, there are inherent dangers in this idea: as was done in France, Spotify In response, prices in the UK are likely to rise (i.e. the “tax” cost is passed on to consumers), which in turn could prompt cash-strapped music fans to cancel their subscriptions.
Another possible disadvantage: administrative headache Redistribute the proceeds of such taxes.
Not only can this get complicated (and expensive), but as you know, the music industry is home to many valuable areas (recorded music, publishing, live promotion, live shows, artist managers, etc.) – and there’s something for each of them It itself claims a “streaming tax” windfall.
Anyway, know this: whenever Daniel Ek Use a cheerful exclamation point LinkedInexamine his motives.
The cost of creating content may be “near zero,” but music is a billion-dollar business — and I Not wanting to give up his share.global music business
