LESS MUSIC ON FREE SPOTIFY: Over the last year or two tension has been increasing between the artists/labels and Spotify over the “freemium” streaming model. In a nutshell freemium is the free trial (or limited free listening) Spotify offers as a way to get new listeners to try the service with the hopes of turning them into subscribers. The labels generally dislike this feature since it’s effectively a free ride for listeners and Spotify – no subscription payment = no royalties paid. Now we’re starting to see the first signs of Spotify blinking at the labels’ pressure by changing the Free offering to limit a portion of music offered to only the paid side. Presumably the bigger artists (aka the music you really want to hear) will be taken behind the paywall, and effectively diminish the free trial product. Will the new limits to free music be noticed by listeners? Is this the first step to dismantling the Free Spotify tier? I’m sure we’ll find out sooner than later. (link)
ANA NAMES NAMES IN THE TRANSPARENCY FIGHT: We’ve heard individual clients (most notably P&G) pushing digital publishers, networks and AdTechs to increase transparency in their measurement and ad delivery. One of the most tangible ways to do this is by going through a rigorous MRC audit. Facebook and Google have already started the audit process in reaction to the self-measurement snafus of Q4’16. Now the ANA (Association of National Advertisers) is calling out seven more companies by name to submit to an audit. Five of the seven already appear to be in motion, or at least seem to be willing to go through an MRC audit. The two notable no comments to the ANA’s request are Snap and Amazon. We’ll see how this plays out as pressure mounts on all digital players to prove that they’re running a clean business. (link)
APPLE MUSIC, BY THE NUMBERS: Finally today, we’re getting a peek inside Apple’s Services revenue to see the impact Apple Music is making on the bottom line. Despite the 17M subscribers stat Apple is currently quoting, only 3% of Apple devices have an Apple Music account. Subsequently, their streaming music service only makes up 10% of its Services revenue, while iTunes downloads still doubles up that total at 22%. Keep in mind Services is a very small fraction of Apple’s total revenue compared to the Device rev mother ship. These stats prove once again that Apple is a device company trying to do music, and more of a download sales platform than a pureplay streamer at that. (link)
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