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June Industry Wrap-Up

June 27, 2017

Spotify Tests “Sponsored Songs” and Expands Concert Listings

In lieu of traditional audio ads that ‘freemium’ tier users of Spotify hear during a given listening session, Spotify is testing a new process that would allow artists and labels to pay for placement of their song – thus monetizing the free listening associated with this kind of membership. This opens up the potential for artists to to secure a place on playlists, which have soared in popularity among subscribers of all kinds over the past couple of years.

Users of the ad-supported tier will have the option of opting out of this test; and Spotify has confirmed that even if the test is successful, this feature will only remain on this tier. Relying heavily on its plethora of data, Spotify will target sponsored song placement based on listening habits.

While sponsored songs’ likeness to the traditional ‘payola’ models of old terrestrial radio is up for debate, it does represent a shift in how Spotify manages its ‘freemium’ platform and drives revenue from those still unwilling to subscribe for a monthly or annual fee. Spotify has remained one of the few popular streaming platforms to offer a free listening tier, and there has long been speculation around whether or not the company would be willing to eliminate it; the ‘freemium’ model is a key differentiating offer when compared to its growing and formidable streaming rival Apple Music.

It remains to be seen how this will be rolled out and made available to independent artists, but if it is made reasonably affordable and accessible to music makers outside of the label system, they could stand to benefit from the feature by reaching new listeners who are more likely to tune into a ‘sponsored song’ then a generic advertisement.

Spotify also announced that in addition to its partnerships with Ticketmaser and digital ticketing platform SongKick, users will now be able to access artists’ upcoming tour dates via a collaboration with Eventbrite and AEG’s AXS. This means more hometown venues, more touring territories, and more opportunities to promote local live experiences for fans.

LANDR Celebrates 1 Million Users

TuneCore’s pals over at LANDR – the tool that allows independent artists to instantly master their tracks at an affordable rate – have hit a major milestone: one million users! LANDR has continued to offer a great solution to artists hoping to polish the sounds of their tracks while lacking a robust mastering budget.

Throughout most of June, LANDR partnered with TuneCore Artist Chance the Rapper, donating $1.00 for every user that masters a track Chance’s Chicago-based “Social Works” Music Academy, as well as 10% of all purchases. We always love to see great brands connecting with great artists, and the charitable element of this arrangement only warms our hearts more.

Google Play Music’s New Release Radio Feature Launches

No matter what music streaming platform your fans dig the most, (and remember, we help you get your releases on a lot of ‘em!), we can all agree that they should be aware of new releases each week. After all, with so much music being digitally released each year, listeners can feel a bit overwhelmed, and it helps to have a little curated direction when it comes to being alerted about the latest and greatest.

Much like Spotify’s “Release Radar” or Apple Music’s “My New Music Mix” features, Google Play Music announced this month that it’s now offering a feature for subscribers called “New Release Radio”. It’s essentially, according to the Android Authority blog, “a playlist that offers up the latest new release and is actually updated on a daily basis to ensure that you’ve always got something new to listen to.”

As personalized, data-driven playlists and features continue to increase in popularity among streaming platforms, Google’s New Release Radio is a welcomed addition. We look forward to seeing how TuneCore Artists can make their music more discoverable to more fans.

ASCAP and YouTube Strike a Performance Rights Deal

In an era in which artists and songwriters have been forced to be more vigilant when it comes to collecting digital royalties, video streaming giant YouTube and performance rights organization ASCAP have reached a multi-year agreement for public performance rights and data collaboration in the U.S. This comes as a sigh of relief to many who have been seeking ways to ensure that royalties are being paid to songwriters, composers and publishers when their works are streamed on YouTube.

ASCAP CEO Elizabeth Matthews says, “This agreement achieves two important ASCAP goals – it will yield substantially higher overall compensation for our members from YouTube and will continue to propel ASCAP’s ongoing transformation strategy to lead the industry toward more accurate and reliable data.”

Good news for TuneCore Artists who are affiliated with ASCAP: this new deal will allow the two parties to address the issues around identifying and compensating songwriters using the extensive amount of data they have available. This, in general, is also another important step towards creating a system within the digital music economy that holds platforms and rights societies responsible for proper royalty payments.

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