Arif Gursel

Spotify's Q2 earnings are the talk of the media world today. With gross profit up 29.2% YoY, 7 million subscribers added, and continued ad-supported revenue growth, it's no wonder the stock is up ≈13% as of writing this (and the highest since early '21). Most importantly, we now see a right-sized company that has figured out a way towards sustained profitability, which didn't look so obvious a few quarters ago. They were able to increase subscription fees, add subscribers, and continue to lean into revenue opportunities that offset music licensing fees, such as podcasts and audiobooks. Podcasts: Now, the bummer is that we didn't learn much about the podcast side of the business, except that ad revenue continues to grow. However, they continue to see podcasting as a great source of profitability (only a bummer because I want to see exactly how well it's doing, but great for the industry). Licensing of Pods: We also learned that licensing of content & wide distribution is paying off, which obviously provided more impressions and ad revenue for Q2. As you may remember, we predicted major platforms would lean into licensing content in early January. The funny thing is that this is the prediction that got the most pushback! A handful of astute investors and industry people told me I was wrong, Spotify was pulling back, yada yada yada. As the great Swedish rock band The Hives sang, "I hate to say I told you so," but as an industry, we need to scream our wins as loud as possible. (Of course, I had to nod to a Swedish band. Also, they are amazing live). https://lnkd.in/eQbw3NDc Video: Spotify now has over 250,000 video podcasts; over 170 million have watched a podcast on the platform. So, uh, let's watch this space. And stop asking if every podcast needs video. The answer is very clear.. Yes, you need a video strategy. Audiobooks: I remain highly bullish on Spotify's opportunity with Audiobooks. They are the clear favorite to be the first Audio Super App, which would allow them to charge a bit more while offering the full digital audio experience to users—capitalizing on the growing movement of broadcast radio listeners and book readers to digital audio. Audible is more vulnerable than I think they realize. All said it was a great quarter for Spotify... and the entire audio industry. I'll be back next week when SiriusXM announces its earnings. https://lnkd.in/efHFZide -- I'm the founder of DWNLOAD Media, a fund that invests in the audio space. If you'd like to learn why now is the time to invest in podcasting, DM me! I'll also recap all of the Q2 earnings via email. Sign up: https://lnkd.in/eysH5x5C Read the Q1 Recap: https://lnkd.in/etkGMXa7 Read the 2024 Outlook: https://lnkd.in/eW9nPCZQ #Spotify #SPOT #audio #podcasting #podcasts #music #audiobooks #investing

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Great article from Rob Wile at NBC News on why FAST services like Pluto TV or Tubi are already incredibly successful and why we are still scratching the surface of something way bigger🚀 💵 .Ross Compton, CFA provides a spot-on analysis that resonates with our vision a decade ago when we spearheaded the FAST market with Pluto TV. "It’s a repackaged version of the old method of distribution, noting that the original broadcast networks were all supported by advertising and the only investment a viewer had to make was in a TV set and an antenna. Now, it’s the same thing, just over the internet. The demand for FAST channels is sustainable — for one simple reason. You really can’t beat free." (Ross Compton, CFA) Free and easy access combined with high-quality content shaped the golden age of TV. The same ingredients are needed for FAST, even if we needed to rethink channel programming and curation in the new era of internet, social networks and the overabundance of video content. Same is true for advertising, it has funded so much of the best TV content over the decades. FAST advertising is like TV advertising but with more data, targeting and measurement! So YES, there is such a brillant future in front of the FAST business! 📺 #FAST #PlutoTV #Tubi #NBCnews #fastchannel #Avod #streaming

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Global on-demand audio streams surged by 15.1% to a staggering 2.3 trillion in the first half of 2024, marking a significant uptick in the music streaming industry. Within this total, U.S. streams accounted for 665.8 billion, showcasing an 8% year-over-year increase. Interestingly, the U.S. streams represent less than 30% of the worldwide total, signaling accelerated growth in international markets. This rapid expansion is not only reshaping the industry but also driving music content IP revenue upwards. #MusicStreaming #MusicIndustryGrowth

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🎥 Streaming Services Mature: As premium SVOD platforms like Netflix, Disney+, and Paramount+ reach profitability, their strategic focus is shifting from converting linear TV viewers to building loyal connections with the next generation of consumers - Gen Z. 🌍 Anime and Non-English Content Shine: Niche programming like Japanese anime and Korean content is uniquely positioned to capture the interest of young, globally-minded Gen Z audiences. These shows are generating significant revenue for streamers, thanks to their vast libraries and dedicated fan bases. 💰 The Money Is in the Details: Anime hits like Naruto and My Hero Academia are estimated to have contributed over $20 million in combined revenue to major platforms in just one quarter. The long-lasting appeal of these shows' extensive libraries is a significant asset. 📈 Engaging the Zoomers: Gen Z's digital-native, globally-connected preferences make them more receptive to foreign-language and niche content. Investing in these programming lanes helps streamers build brand loyalty and market share with this crucial demographic, even if the viewership may not be chart-topping. #streaming #content #international

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IYKYK. Spectrum Reach is helping "harness the chaos" of the media ecosystem on both the linear AND streaming front. That's why we are the #1 multiscreen video partner in our markets. Combine that with 30MM+ addressable households...and you can see how we help our partners spend more time optimizing outcomes and less time aggregating audience.

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A couple of months ago I posted about RIAA suing Verison. Last month Verizon shot back: https://lnkd.in/g23p4KSX What will be the end result of this “conversation’ playing out in court. In the long term. Is this a result of technology (streaming services) not addressing the problem that they were trying to solve? Perhaps this is a signal that further innovation is needed in how content is managed, distributed, and monetized online. There's a strong argument that, while tech helped create more accessible music platforms, it hasn't fully addressed the concerns of artists, songwriters, and other creators. Is this lawsuit an opportunity to revisit those revenue-sharing models and perhaps craft something fairer?  We want to move forward and not limit creativity as it seems the problem is still not solved. Where do we go from here?

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2024 is the year you need to say goodbye to version control. There is no more locking a pipeline or process to a specific version because SaaS no longer uses versions. And trust, everything you use will be an *aaS of some sort. IaaS, HaaS, and SaaS are here to stay. While some companies are discovering that Cloud is not necessarily a cost savings it’s not like we can deploy equivalent on-premises solutions. Tech companies will continually prioritize innovation over security and stability and we as customers can push back - but it will always be a struggle against the tide. We must come up with novel ways to write our agreements, create links between platforms that are resilient, and adjust change management to a more fluid state. Buckle up.

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“Who says Google and Amazon get to have all the AI-investment fun? In another twist, Apple is reportedly poised to back ChatGPT developer OpenAI. That possible investment, which would be part of a new raise valuing the AI business at over $100 billion, came to light in a Wall Street Journal report. At the time of this writing, the Apple Music developer didn’t appear to have addressed the matter publicly. However, per the mentioned report, the “unusual” startup investment would see Apple (and potentially Nvidia as well) join existing multibillion-dollar backer Microsoft aboard the OpenAI train. Against the backdrop of an accelerating battle for AI supremacy, reports previously suggested that Apple had even considered an artificial intelligence alliance with rival Meta. But with the iPhone developer having tapped OpenAI in June as its first “Apple Intelligence” partner, things are seemingly trending in a different direction. Per the Journal, it’s unclear how much Apple may contribute to the Thrive Capital-led OpenAI round, but the raise is expected to total “several billion dollars.” And in the bigger picture, the move would officially add Apple to a growing list of high-profile companies (and music streaming service operators) with stakes in artificial intelligence giants. Perhaps most conspicuously, this overlap between leaders in on-demand streaming – which is, of course, an integral component of the contemporary music landscape – and AI mainstays refers to Amazon’s approximately $4 billion interest in Anthropic. Facing a particularly important copyright infringement lawsuit from music publishers, the latter entity remains adamant that training its models on protected compositions sans authorization constitutes fair use.” Read the full article for more: #Apple #Google #Amazon #ChatGPT #OpenAI #Nvidia #Microsoft #Meta #AppleMusic #Anthropic #FairUse #AI #ArtificialIntelligence #Streaming ##Music #MusicBusiness #Musica #MusicIndustry #Musique #Musik #MusicBiz

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Let the great rebundling begin! Sure, the streaming wars accelerated the end of cable ("cord cutting"). But as subscription growth churns and declines and Wall Street demands revenue, all of the streamers are looking for ways to reach new customers-- aka, bundling. Welcome back to your cable box in a new form. If you have been tracking Evan Shapīro media universe maps, you know this is coming. But isn't it too late? Zillenials watch 4 hours of video a day but 3 hours of it is not distributed by the studio system. It's on YouTube and TikTok, et al. And btw, the streaming wars, not AI or the strikes, have most significantly contributed to this massive industry consolidation. If you did the back of the napkin math, these vertically conglomerates were never going to pay for $billions/year in content to feed the beast on a $9.99/month subscription model. Producers were never going to get the same pay day with a +10% global, in-perpetuity deal. The industry is built on multiple revenue streams for both producers and distributors. Everyone needs windowing, syndication, sales by territory and a real share of the backend ownership. https://lnkd.in/eTsxbrby

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“The UK music industry, with support from the UK Government, is seeking your help to identify resources that raise awareness of the significance of metadata in ensuring creators are fairly paid and credited for their tracks. In music, metadata is information which describes who contributed to a track’s creation, and how – such as who wrote a song, who performed on a recording, and who owns the individual rights in the work or recording. Metadata includes unique identifiers, such as the ISWC, ISRC, IPI and IPN, as well as title and contributor information. Education and awareness of the importance of metadata is vital for all parts of the creative value chain, from those creating songs and recordings, through to those responsible for delivering data to platforms, CMOs and others, including artist managers and A&R departments. Your responses to this survey will inform the work of the Metadata Education Group, one of the expert industry working groups formed to help deliver improvements to metadata practice as part of the UK Metadata Agreement. The Group is working to map out existing resources that educate and raise awareness of the importance of music metadata, maximise access to these resources, and identify gaps in current provision.” Read the post and the survey below for more: #Metadata #UK #Creators #CMOs #ISWC #ISRC #IPI #IPN #Artists #Songwriters #MusicPublishing #IP #IntelectualProperty #Copyright #DerechoDeAutor #DroitdAuteur #Music #MusicBusiness #Musica #MusicIndustry #Musique #Musik #MusicBiz #IPO

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Appreciate Water & Music essentially creating our pitchdeck for us! This is all spot on across live entertainment. It reminds me a lot of the early days of digital advertising where everyone was excited by the proliferation of data and tooling but also wasn't sure what to trust or what to make of it all. The companies that won were the ones that focused on measuring business outcomes and providing solutions to increase those actions. It's gonna be a fun few years as we see the transformation progress of live entertainment from a gatekeeper-led industry to a much heavier e-commerce based vertical.

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Heard of a #NIM? I had a fascinating chat with Michael Kaplan at #GTC24 about the potential for Nvidia Inference Microservices to tackle challenges in the Media & Entertainment industry, in tandem with advancements in NVIDIA Omniverse and Alliance for OpenUSD (AOUSD) that can really transform end-to-end workflows in previz and production pipelines. Watch the full interview! 👇

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📺 **Battle for the Living Room**   The race to dominate the smart TV operating system (TV OS) market is heating up, with major players like Roku, Google, Amazon, Samsung, and LG vying to enhance user experience and capitalize on new business opportunities through data and advertising. Despite this fierce competition, a key question emerges: do consumers actually care about which OS their TV uses? 📊 **Market Potential**   At the StreamTV Show in Denver, experts discussed the benefits of owning a TV OS, such as controlling user data and enhancing ad revenue. Analyst Alan Wolk noted that around 40% of smart TVs globally lack a dedicated TV OS, presenting a significant market opportunity. Even small gains in market share can translate to substantial financial rewards, making the competition highly lucrative. 💡 **Consumer Preferences**   Panelists at the event debated whether consumers prioritize the TV OS in their purchasing decisions. Google’s Rob Caruso argued that factors like size and price still dominate, with the OS being a secondary consideration. However, Vizio's Katherine Pond and LG's Matt Durgin highlighted that content availability and user experience offered by the TV OS could influence consumer choices, particularly for those seeking quality and value. 🎬 **Content and User Experience**   Ultimately, while the current focus for consumers might not be on the specific TV OS, the content and seamless user experience provided by these systems are crucial. Companies like Vizio and Samsung emphasize the importance of offering desired content and a smooth interface, hoping that improvements in these areas will eventually drive consumer preferences toward specific TV OS platforms. #TV #TVOS #Streaming #SmartTV

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Streaming is evolving to resemble old cable TV, focusing more on profitability than growth at all costs. According to insights from global streaming leaders shared by the NYT, several trends are emerging: - Increased prices and more advertisements. - Bundling of services. - Potential shutdowns and mergers of existing streaming platforms. - Increased content spend and licensing of content. - Greater investment in live sports. To thrive in streaming, you need to aim for 200+ million global subscribers. Despite all of this, content is still king! Quality programming and creativity are still crucial for the long-term success of streaming services (as a consumer, this one makes me very happy). https://lnkd.in/eViUFSU5

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