AUDIO’S SHARE OF BRAIN GROWING: Each quarter Strata surveys 1,000+ agencies to gage interest in various sectors of the media landscape. As you’ll see in the following Inside Radio link, consideration towards all-things Audio is up. This is mostly driven by an interest in Digital Audio – with a full 55% of agencies saying they expect to spend more on the streaming side in the upcoming year then they previously have. This jives with the “Golden Age of Audio” narrative we’ve been espousing for a while now. As streaming proliferates listeners will consume more overall audio, and this increasing time spent will command more attention (and budget) from clients and agencies alike. Keep in mind this is just a survey of agency opinions, not hard fact. But at least Audio is growing it’s prominence inside the minds of the buying community. http://www.insideradio.com/audio-industry-growth-attracts-more-ad-agency-interest/article_9dc262d8-7b1a-11e6-bd0e-1b96d75d333e.html
TIDAL’S FUZZY MATH: More news on Tidal in the trades this morning. This time it’s Tidal’s financials from 2015. For the whole year Tidal lost $28M USD, on the weight of $35M USD in content costs. Perhaps the most interesting # in the report is Tidal’s worldwide subs – at just 3M. (That’s about 1/12th Spotify’s total if you’re keeping score.) What’s crazy is that Tidal’s total top line revenue is just $47M – so a little more than $15 per listener per year. Consider that Tidal’s subscriptions cost $10-20/month (so $120-240 per year), and you’ve got a major disconnect in the numbers. Either they’ve given away a ton of subs and very few listeners are paying full rate, or listeners only subscribe for a month or two and then drop off. Regardless of the cause, there’s some sketch in these financials. http://www.musicbusinessworldwide.com/tidal-lost-around-2m-a-month-last-year-while-seeking-extra-financing/
Have a great Thursday guys!
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