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Spotify May Now Be Looking For A Buyer

Spotify looking for a buyerIt looked like Spotify’s strategy was to go public this year, but recent announcements have pretty much put that aside. The IPO (Initial Public Offering) market has changed recently, and tech companies can no longer be assured of the big paydays of just a few years ago. As a result it looks like the company’s new plan is to look for a buyer instead.

Now to be sure, Spotify has over $3 billion in revenue, but it also has been losing money as well. It currently has a lot of investors that want to cash out, and if an IPO is risky, then those investors are going to push for another way to get their money, which is through an acquisition.

Industry consultant Mark Mulligan thinks that a buyer probably won’t be Western. All the deep pocket companies like Amazon, Apple and Google already have their own services. Facebook is a possibility, but still not a good fit. Mulligan thinks that the only reason why Apple might be interested is to use up some of its off-shore cash reserves before it gets repatriated by the Trump administration, but that’s still a long shot. European companies don’t seem to be interested either.

That leaves Eastern companies and there are a number of them that could be potential suitors. China’s Tencent is already the streaming leader in the Asian market and the company has the money and the will for an acquisition. It would give the company an entrance into the West and immediately make it the 800 pound gorilla of music streaming.

There are a number of other Chinese companies also on Spotify’s radar. Alibaba, Dalian Wanda, and Baidu all have pockets deep enough to pull off an acquisition. Mulligan also suggests that a couple of telecommunications giants could also be in the running with SoftBank and India’s Reliance Communications being the most likely, although 21st Century Fox and Liberty Global may also see some synergy with Spotify in the fold.

One way or the other, it looks like Spotify is going to be going through some changes soon. How will that change its service? Probably not much actually. Until the license agreements with the major labels are renegotiated so the company can offer lower prices, things should still remain the same for some time to come.

Music Industry News Roundup For The Week Of 12/30/16

Music Industry News Roundup Here’s the Music Industry News Roundup for the week of December 30th, 2016, the last week of the year. As expected, there hasn’t been much in the way of blockbuster news, but there have been some interesting pieces.

Mozart was not #1 in album sales. A story made the rounds that a box set by the composer outsold even Drake, but the measurements have proven to be specious at best. It was a bad year for the physical album as a whole though, as the article points out – even for Drake.

Here’s a list of the top 50 biggest songs on Beats 1 radio last year. There are many that are expected, but a few surprises as well.

Rolling Stone has 6 reasons why 2016 was a great music year. There are a few that I don’t quite agree with, like radio being healthy and album releases being events, but other than that its spot on.

6 music tech predictions for 2017. Culled from 20 industry tastemakers, these are mostly out-of-the-box in that you probably haven’t heard about them before. They also lean towards live music rather than recorded.

Warners is getting back into compilation albums. This is spurred on by the fact that singles are hot again thanks to streaming [subscription required].

Deezer plans to take over the streaming world. The streaming universe is still young and will be expanding for some time yet, so why not?

Tencent is a big threat to Apple Music and Spotify. It already dominates Asian streaming and has the money to come West [subscription required].

Billboard looked at the 10 best music memes. I must admit that I missed these during the year, but don’t feel too bad about it.

PC World looks at what went right and wrong with VR in 2016. Virtual Reality still hasn’t caught on the way everyone had hoped, but it did make some progress.

Warners is going head first into VR though. It plans “hundreds” of VR music releases in 2017.

Many Top 40 hits had ambiguous key centers. This is a little music geeky but interesting. It shows the evolution of the hit song and consumer tastes.

That’s the Music News Roundup of what went on in the music industry last week. Happy New Year everyone. See you next year!

Music Industry News Roundup For The Week Of 8/25/16

Music Industry News Roundup Here’s the music industry news roundup from the week of August 25th, 2016. It’s a little more diverse this week, but there are a few blockbuster topics (Spotify never fails to excite). Let’s get into it.

Spotify’s label deals are now out of contract. The company is going month to month, and trying to negotiate a lower royalty rate, meaning that it wants to pay even less to artists and labels. Spotify already has a “soft” deal, but the labels are now pushing for something better. Not a good strategy for Spotify when its IPO is looming, in my opinion.

London’s looking for a “night czar.” The city is looking for a person to help rebuild it’s fading nightlife. It pays about $46,000 for 2 1/2 days work per week. This is a government gig, but there’s probably not a lot of power to change much, as the reason why clubs are dying has more to do with finances than regulation.

A former Apple Music exec defends exclusives. This is a hot topic, as some say it’s really hurting the music business while others think it’s saving it. Sean Glass makes some good points about why it’s a positive.

AM radio doesn’t seem to have much future. This radio consultant sees there’s a need for it and a few stations are thriving, but more and more AM stations are closing all over the world and the trend will probably continue.

Samsung’s free Milk Music service will close in September. It seemed like a good idea in 2014 when it was launched, but never caught on with Galaxy users. The company is urging users to switch to Slacker instead.

Forbes highest paid DJs. EDM has peaked, especially in the US, but the top DJs are still raking it in.

Tencent is the biggest company in China, and wants to be everywhere else too. The digital entertainment company has the financial backing of the Chinese government, and content deals with all the big players in the world.

Want to invest in music, there’s a fund for that. 10 years ago everyone wanted to be in the recorded music business, now it’s touring and and merch, which is booming. This investment fund specializes in that area.

Is sleep a musical genre? It is to some people that specialize in sleep music creation and sleep enhancement products. Don’t be surprised to start seeing this show up in playlists.

That’s the News Roundup of what went on in the music industry last week. Let’s see what next week brings.