Britney's Secret Project, Drake's Big Drop, SPOT & Market Crashes 💸

Question: When will Hi-Fi audio quality be available on Spotify? 🔊

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Suno & Udio Update

As promised, we’re keeping you updated on this one. We delved into the action against them in a previous issue, and now we are looking at their planned defense. 

Suno and Udio filed answers to the original complaints, both are using ‘fair use.’ 

Here are the filings: Suno and Udio. 

Suno’s defense is that the copies of copyrighted recordings made during their AI training fall under ‘fair use’ and are part of their ‘internal technological process’ that develops non-infringing original outputs. 

Further, music styles and genres are not proprietary and can’t be owned by a company or entity. So, while a musical recording can be protected, the styles and characteristics cannot. 

Suno also accused the labels of anti-competitive behavior by stating that the lawsuit itself is an attempt to maintain dominance by preventing new tech from growing.

Udio, too, argues that the tool’s use of copyrighted recordings during training is fair usage and integral to developing non-infringing technology.

Udio states that the plaintiffs have acknowledged that the output doesn’t infringe on any specific copyrighted recordings. 

Further, they argue that copyright law doesn’t grant ownership of music styles or genres; instead, it only applies to specific recordings. Udio also accuses the labels of anti-competitive behavior by attempting to maintain dominance and prevent the ‘democratization of music creation.’ 

Suno took a less confrontational approach and pointed out the transformative nature of their tools, while Udio challenged the broader implications of the copyright law. 

The RIAA was quick with a response: 

“After months of evading and misleading, defendants have finally admitted their massive unlicensed copying of artists’ recordings. It’s a major concession of facts they spent months trying to hide and acknowledged only when forced by a lawsuit. Their industrial scale infringement does not qualify as ‘fair use’. There’s nothing fair about stealing an artist’s life’s work, extracting its core value, and repackaging it to compete directly with the originals, as the Supreme Court just held in its landmark Warhol Foundation case.” - RIAA Spokesperson.

Further, RIAA mention that both Suno and Udio had legal paths that could’ve been taken to bring their tools and products to the market simply by seeking consent. 

Blog posts and quotes from all sides are very forthright, suggesting this won’t go away easily, and it’s already turning out to be quite the rumble. 'Fair use' was the expected defense. However, the difference in approach will make for interesting reading in the coming weeks.

SPOT All-Time High & Deluxe?!

The off-center Wi-Fi green logo is everywhere right now. They’ve been mentioned as the new Sweethearts of Wall Street. For a company that has typically reported losses and famously cut mass jobs not so long ago, they are forging forward. 

Their Q2 financials for 2024 show that they have secured a massive $4.13 billion in revenue, which puts them at a 20% increase (YOY). 

Reporting 626 million monthly active users and a 12% spike in paid subscribers, now at 246 million. The figures show that most of their MAU base is on the ad-supported tier. 

Partnerships with companies like WaveMaker offer a robust ad delivery network. They continue to increase revenue outside of the subscription model by making the most of their ginormous ad-supported listener base.

The current speed of SPOT growth hasn’t been seen since 2021, when they started expanding their podcast offering. 

True to form, Spotify is doubling its profit-making efforts. They are now talking about Spotify Deluxe, a higher-priced tier expected to be $5 more expensive, bringing the subscription price up to $18 (USD). 

Daniel Ek shared the information during the July 2024 earnings call. However, Deluxe or Superium with lossless hi-res formats have been rumored for about three years. 

Could we finally see hi-fi streaming coming to Spotify in the next few months? 

Shareholder Deck for Q2: 👉 Q2 2024 Shareholder Deck 

The Big Drake Drop

Every now and then, artists will open up the vaults and deliver unheard music and unseen footage. Taylor Swift recently did it by releasing a surprise double album. Now, Drake is blessing fans with a huge 100GB mega-archive.

Most of the time, rumors of this type of drop turn out to be false. They start somewhere in the X-sphere and gain a lot of steam, ultimately fizzling out when proved untrue. 

This time, though, Drake and OVO took to social media to confirm the authenticity of the drop. Drake launched 100gigs.org, which is stacked with downloadable files. 

After the tussle with Kendrick Lamar earlier in the year, Drake has been reasonably quiet. So, getting a drop packed with video content, three new tracks, BTS clips, and more is quite something. 

The website has neatly organized files; you can go through them and download whatever you want for free. 

The three new tracks feature Latto, 21 Savage, and Young Thug. Interestingly, just before the drop, Drake followed a ‘random’ Instagram account called Plottttwisttttt, alerting fans that something was coming. The moment the account went public, the link for the vault went live on his own Instagram Stories. 

Those with a keen eye will notice the photo with boxes with “No One Like Us—Euro 2024” scrawled on them. 

Along with a veritable feast of audio clips, it’s a look into Drake’s process and life in a way that pulls the spotlight straight back to him after months of turbulence.

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Stock Market Slump

You might’ve heard that the stock markets are experiencing a major dip, impacting music streaming giants. On Monday, August 5th, music stocks started to slump. 

So what does that mean? 

When stock markets experience big dips, it indicates broader economic issues (which there are, but we will stay music-focused for this). Inflation, interest rates, and tension are in play. 

When these situations arise, the public typically reduces their spending, which normally impacts the entertainment industry—and, in this case, music streaming and music businesses. 

The Tech Sector, where music streaming is often classified, is particularly sensitive to market fluctuations. Why? Well, tech value is based on growth potential. An economic slowdown leads to a sharper decline in stock prices. 

Now, focusing on the music streaming majors, the slump could be tied to revenue generation and slowing subscriber growth. Most streaming companies have a subscription model as their biggest revenue; an economic downturn can mean fewer new and retained paid subscribers.

This impacts music streaming platforms that earn a portion of their revenue from advertisements (like Spotify’s ad platform) even more, as businesses spend less on advertising. 

The next factor is High Valuations based on expected future growth. So, an investor will sell off stocks if growth looks slow (based on economic challenges). High volumes of stocks being sold lead to price decline (more sellers than buyers push the price down). 

Adding something else to the mix, the music streaming market could become saturated and may hit a slump because the market for new subscribers is shrinking. 

Looking at the long-term implications: 

• Fewer innovations and fewer investments. Right now, AI is big, making the impossible possible. Only so many new features, expansions, and content can happen. (Speculative). 
• Music streaming companies will make shifts. For example, Spotify is becoming more of an entertainment hub than just a music service. These shifts will be part of larger strategy changes to cut spend and increase revenue. 

What should you watch going forward? Industry trends: Look for consumer behavior, tech advancements, and regulation changes (like the lawsuits we report on). 

Second, look at financial reports from the last few years and new ones as they are released. You can track performance against current (and past) economic changes and challenges. 

A strong performance and predicted growth will see more investors; anything other than that will see further slumps. 

It is important to note that while there are concerns about potential growth declines, the music streaming industry as a whole has seen significant increases in on-demand audio streams by 15.1% in H1. 

However, that growth doesn’t always translate to proportional revenue increases when faced with economic challenges. Despite growth in streaming volumes, revenue stagnation remains a concern due to economic difficulties.

Live Music Streaming

Amazon Music is making a splash in the live music scene and plans to expand further. Starting Stateside, Amazon ran its City Sessions and started strong with Wallows, The Black Crowes, and Kings of Leon. Mish Mayer, Amazon Music EU head of production and creative, said their focus will now be extending that initiative globally, starting with the UK. 

Fans can enjoy an intimate live-streaming session from their favorite artists. The festival content will be available on the Amazon Music channel and Prime Video. 

“We want to deliver fans and customers the best possible video experience at festivals. So we livestream on HDR for Prime Video, which means you’re getting super crisp cinematic footage of the action on the stages. Then we add social content, including interviews, so you’re getting a full experience.” - Mayer said.

Using their recent Wireless stream as an example, there were 15 cameras across two stages and a purpose-built space overlooking the Amazon Music stage—the Amazon Terrace. Customers of Amazon streaming could access the space.

It's Britney, B*tch

*Click* 

That is the sound of a million projects being paused until 2026. Why? Well, Britney’s biopic is set to be the biggest biopic in 2025. Universal Pictures just acquired the rights to the best-selling memoir ‘The Woman In Me.’ 

Released in 2023, the book sold a huge 2.5 million copies. It covers her 13-year conservatorship and intimate details of her relationships during her rise to the top.  

Over the last few years, the 'Free Britney' movement hasn’t faltered. Britney fans, new and old, have rooted for her, supported her, and streamed her music to the extreme. So, it stands to reason that a movie based on her life (in her own words) will be a smash hit. 

It is rumored that the rights to Britney’s extensive music catalog are part of the deal, so it’ll be Britney to the max. 

The tweet that caused a frenzy:

Britney is a veteran of the spotlight, rising to fame quickly. Her first two studio albums, Baby One More Time and Oops!... I Did It Again, are some of the biggest-selling albums of all time. However, Brit had been performing since age two and auditioned for The All-New Mickey Mouse Club (MMC) at 8.

The producers were so impressed with her that despite not offering her a slot due to her age, they recommended that she get an agent. After some TV ads and a stint on Off-Broadway, she made it to Mickey. Joining Christina Aguilera and Justin Timberlake. 

At 15, she signed with Jive Records (1997). The single (Hit Me) Baby One More Time was released in 1998, and her first studio album followed in 1999. Britney quickly became the biggest name in pop. 

Now, aged 42 with a rocky road behind her, her biopic is something that millions of fans are waiting for, with a soundtrack that will be more than a little pleasing to them. 

Right now, all that is known about the movie is that Universal Pictures, Marc Platt, and Jon M. Chu are on board. Oh, and Britney is excited, too.

Answer: Unfortunately, it seems impossible to provide a specific answer, as we bet Spotify is still looking for one. Fingers crossed to make it happen this year! 🤞🏼

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