Bits & Bytes 5/26

INFLUENCING EMERGING MUSIC TECH CULTURE

THOUGHTS FROM THE CEO

MAY 26, 2015

We are watching modern day mayhem in the streaming space these days. 

Spotify’s contracts are almost up with the majors and the terms negotiated are ugly. Earlier this year, Universal allegedly turned down a billion dollar advance for two more years. The Sony agreement leaked this past week really highlighted who is winning from this arrangement. Hint: it’s not the artists. 

SoundCloud’s monetization strategy is still very much in jeopardy. They waited to do deals with the label, got their valuation way up and now they can’t come to terms with Sony or Universal. Makes it very hard for them to pull off any monetization, plus major label artists are being plucked off the service like what happened to Madeon this week. 

And with Tidal dropping the hottest video of the summer last week, it’s a shame for the fans because nobody can see the video unless you have the service. The buzz will fade quick and people will probably not get a chance to really appreciate this gem. 

All eyes on Apple. June 8th is around the corner, I'm excited to see this new iteration incorporating Beats into iTunes. There is no question this is the next and probably last great format in music but right now, The Streaming Wars feels like a bad version of The Hunger Games. 

-Jesse K (@JesseKay) 

The International Artist Association has published a letter in response to what we learned about Sony x Spotify deal. The letter says that the contract leak “is a turning point for artists that cannot be underestimated” and that “the content of this contract suggests why non-disclosure clauses have been defended so fiercely”. Read the full letter! 

The secret to Snapchat's success? Intuition, not data - and there's a stark difference. 

The former tells you what people think they want; the second allows you to guess what they might really want. 

As of today, all artists (18+ years old, in any genre and from anywhere across the globe) can register for a chance to lay down tracks in some of the world's best recording studios - on Converse's dime!

"It's like Instagram and Spotify had a cute little baby." Every person is one song and this new app is the soundtrack of your social life. A free social music app, that you gotta check out now! 

Today Bob Sillerman played his latest hand, taking EDM giant SFX private again. 

SFX Entertainment shares are up 22.3% today, as the company announces it has agreed to be acquired. 

Pandora has agreed a deal to acquire online music analytics firm Next Big Sound for an undisclosed sum, saying this will "accelerate strategy of harnessing data for the benefit of music makers". 

Disruption in Music, a forum investigating the changing shape of music, was the final event of Internet Week. It brought together a panel of music industry big hitters, including our very own Jesse K.