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Mar 3 2023

🔵 New streaming models: is Universal playing the room?

The latest news from the music and tech industries
Hi there -

Anyone getting that deja vu feeling? Only 4 weeks ago Universal Music announced it was partnering with TIDAL to develop new streaming models, and now it has announced exactly the same thing with Deezer.

The similarities seem relatively obvious: both DSPs involved are not the dominant players. Both have very good reasons to get close to Universal, too.

After all, if a better model is found with either platform, Universal could - and it's a stretch - elect to go 'all in' with that partner and pull the rug on the likes of Spotify and Apple.

To be honest I suspect hell will freeze over before that happens, and a more likely outcome is that Universal is slowly turning the screws on the likes of Spotify, but let's see.

Of more interest to me right now is what exactly these partnerships will involve. For now, nothing is public and no tests of the kind TikTok have localised to Australia have taken place.

I'm sure it will happen soon though, and it will be fascinating to see how that shapes up. One can only wonder too whether TIDAL will have one model tested and Deezer another.

Either way, this exploration of new models is very welcome. I look forward to seeing how they all shape up.

Have a great weekend,

D.

🎶 written whilst listening to various selections from De La Soul's first six albums, which have FINALLY landed on streaming services. It is bittersweet to have them appear after the death of Dave aka Trugoy, "who departed life a little too soon and didn't see me grab the Plug2 fame", to paraphrase the mighty "I Am I Be". So much to love, as there always was. Enjoy em all X 
Stories from the Music Industry:
Universal Music to Develop New Streaming Model With Deezer
Universal Music Group CEO Lucian Grainge announced that the company had entered into a new partnership with Deezer during an earnings call on Thursday (Mar. 2nd). The goal? To help develop a new model that ensure[s] continued growth of streaming while also valuing the contribution of both artists and fans alike. UMG previously touted a similar partnership with TIDAL in January.

👆🏻Hot take: is Universal playing the room here? For some reason I can't help but think so. 
The most important news of the day? UMGs recorded music subscription streaming revenues grew by 10.0% YoY (at constant currency) in 2022, reaching EUR 3.901 billion. Double digits just!

👆🏻Hot take: growth YoY is slightly lower than Sony, but I'd imagine shareholders and higher-ups at Universal are delighted with this result. 
San Francisco-based blockchain-powered music platform Audius has appointed Shamal Ranasinghe as Chief Business Officer. Ranasinghe will oversee the companys relationship with the music industry. A veteran of the music technology space, Ranasinghe joins Audius from SiriusXM/Pandora, where he was Vice President of Product Management, Catalog and Creators.

👆🏻Hot take: in general I feel most people have a negative take on Audius. That said, Shamal is an incredibly smart man, so I am keen to see what he will bring to the platform. A very smart hire IMO. 
The impact of these changes is huge. With the ongoing cost of living crisis and the live sector still recovering from the impacts of COVID-19, such increases would make it unaffordable for many British acts to work and perform in the worlds biggest music market, claimed the letter, signed by groups including the BPI, AIM, FAC, Ivors Academy, Musicians Union, MMF, PPL, PRS for Music and umbrella body UK Music.

👆🏻Hot take: I do wonder what the end game will be in this space. The whole setup is becoming an unsustainable mess. 
Theres no waiting around for a song I like to enter the rotation, as I do with the FM station in my car. Its effortless. But after some time, the AI DJ starts to speak to me less and less. Soon, it only lets me know what artist is on deck. I wonder why I need it at all. After 30 minutes, I realize Im just listening to my top-played songs. Ive heard them all thousands of time. I turn off the AI DJ, and go look for a new album I havent heard yet.

👆🏻Hot take: OK so I was not a fan of this when it was announced, but all the press I'm seeing around it is... not positive. "Soulless" appears to be the recurring theme so far. 
Stories from the Broader World of Tech:
House panel approves bill that could lead to total TikTok ban in the US
As reported here by CNN, the bill, known as the Deterring Americas Technological Adversaries Act, would also allow for the control of other China-related economic activity, if signed into law. The bill would still need to be passed by the Republican-led House and the Democrat-led Senate before it can become law. The bill, sponsored by Republican lawmaker and Foreign Affairs Committee chair Michael McCaul, was passed with 24 Republican votes to 16 Democrat votes.

👆🏻Hot take: I really cannot see TikTok avoiding this ban now. Marketing folk: time to find alternative platforms for advertising etc in the US. 
Heres what happened: When a company called Blix Inc sent the latest version of its iOS mail app for review, Apple replied with nah, you cant. Apparently, the update can generate text using ChatGPT, and for Apple this is a cause for concern, given the app did not include proper content filtering that could prevent problematic text output.

👆🏻Hot take: a slightly misleading headline. In truth the reasoning here seems sound to me and once again speaks to ethical principles being needed around AI. 
Magazine app Flipboard is joining the Fediverse the group of interconnected servers powering a range of open source, decentralized applications, including the newly popular Twitter alternative Mastodon. Starting today, the Flipboard app for iOS will include a beta feature that will allow Mastodon users to visually flip through their timeline to view posts from the people they follow, much like theyve been able to do with Twitter.

👆🏻Hot take: this framework could get very interesting if further platforms adopt it. Keen to see that happen. 
Need something else to read? Here you go:
Social media used AI to create the new big tobacco. So, what’s next?
AI has been advancing rapidly over the last 10 years, doubling every 6 months. Until recently, the advancements have mostly been behind the scenes from a consumer perspective.

👆🏻Hot take: a great piece from Pinterests CEO about their approach to AI and their ethical position around that. Good to see - arguably we need more of this. 
It not only told everyone I died but tried to fake my obit. Are we ready for this machine-driven future?

👆🏻Hot take: I'll admit to rolling my eyes at the headline on this one, but it is good to read all views on a topic, and some valid points are made. 
Calorie counting is one of the most poopular ways to try and lose weight. Here, we’ll explain why it doesn’t work — and what does.

👆🏻Hot take: I'm oddly fascinated by this whole argument that calories are a rubbish way to lose weight. And yes, it's for exactly the reasons you think 😆
The latest from Motive Unknown:
They Are, They Be! Yes - the day has FINALLY come: the first SIX De La albums are now up on streaming services for you to enjoy. 

Every one's a gem - click on the image below to start listening!  🎶🎧🔥
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