I. Music & Tech
The Road to IPO : Spotify to Clinch Royalty Deal with Warner
Last week sources reported that Spotify could reach an updated royalty deal with Warner music as early as September. This agreement would be the last deal of it’s type the company would need to solidify before making a push to their highly anticipated stock market listing. The negotiations of the agreement seem to be centered around generating terms of a revenue split in favor of Spotify. However, a revenue split favoring the listening platform would come at the expense of limited access to “premium” releases for non-paying listeners and an upfront payment from Spotify to the label. For more details on the potential agreement read here.
Apple to Team Up with Cochlear
Apple continues to push the envelope in terms of the the capabilities of it’s devices by bringing users the first made Cochlear implant for the iPhone. After being approved by the FDA in June, Cochlear’s Nucleus 7 Sound Processing technology will now be available to stream sound directly from compatible Apple devices. The technology allows those with the surgically implanted hearing device to control sound settings directly from the iPhone without having to download an app. Read more about Apple’s expanding the portfolio of it’s services here.
SoundCloud Saga Continues : Plans to Sell Majority Stake to PE Firms
Chock full of layoffs and office closings, SoundCloud’s recent past has been nothing short of tumultuous. Despite the streaming service claiming a user base north of 170 million they are in desperate need of a lifeline, and last week it was confirmed they may actually have two. Coming in the form of private equity partnerships that would ultimately relinquish a majority stake in the company, CEO Alex Ljung certainly favors an offering that would avoid a forfeiture of power to an individual entity. Check out more about the developments here.
TuneCore Artists Approaching the “Billion Dollar Club”
With a mission of helping independent artists sell their music online without sacrificing sales revenue or giving up their rights, last month’s announcement that TuneCore artist’s projected streaming and download revenues would soon hit $1 Billion confirmed a huge upcoming milestone. Founded in 2006, with a very much unwritten future for the digital music market, TuneCore’s steady growth and positive outlook is truly a testament to an unwavering commitment to independent artistry. As all signs point to a future of increased revenues for artists as subscription based streaming services continue to solidify their position, there has never been a better time for artists to invest in themselves. For more info check out TuneCore’s site.