Streaming
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A federal judge in Georgia ordered the hip-hop mixtape site Spinrilla and its founder Jeffery Copeland to pay Universal Music, Warner Music, Sony Music and others $50 million for copyright infringement related to the streaming and downloading of thousands of songs by Bob Marley, Beyonce, Kendrick Lamar and more, according to a settlement agreement filed Wednesday.
As part of the agreement, Copeland is also permanently forbidden from operating Spinrilla or any other website, platform or similar projects anywhere in the world.
The settlement this week stems from a six-year-old lawsuit filed by the Recording Industry Association of America (RIAA) on behalf of UMG, Sony Music Entertainment, Warner Bros. Records, Atlantic Recording Corporation and LaFace Records, alleging that Spinrilla and Copeland allowed users to stream and download unlicensed content.
Copeland founded Spinrilla in early 2013 as an app for approved users to listen to and discover “independent and emerging hip-hop artists.” When the music industry filed its lawsuit, Spinrilla had 19 million users, including 14,000 who could upload content to the platform, and around 1.4 million songs available on the platform.
Over the course of the case, the RIAA said it identified more than 4,000 songs by Rihanna, Michael Jackson, Kanye West and others that were infringed, and in late 2020, U.S. District Judge Amy Totenberg found Spinrilla liable for copyright infringement.
UMG, WMG, Sony Music Entertainment and Spinrilla did not respond to requests for comment.
As part of the agreement, Spinrilla will transfer the domain name for its service to the music industry companies, which they have agreed not to use.
ByteDance is closing the free tier of its music streaming service Resso, the company announced on Wednesday (May 3). The move to premium-only streaming takes place on May 11, according to a statement from ByteDance, and current users on the ad-supported tier will be offered a 30-day free trial of the premium service.
“Resso premium is already a best-in-class music service with ad-free listening and a host of personalized and social features,” Ole Obermann, ByteDance’s global head of music, said in a statement. “Resso’s move to a premium-only service will allow the development of a better user experience for music fans, while increasing opportunities for rightsholders and artists. We are committed to building the world’s leading social music streaming platform and ensuring artists and music creators can rightly benefit from its growing success.”
ByteDance initially launched Resso in March 2020; it is currently available only in India, Indonesia, and Brazil. Last year, ByteDance entered into conversations with major music rights holders about moving its music streaming service into additional countries in Latin America, Southeast Asia, Australia, and New Zealand.
Those conversations are complicated by the fact that the music industry is hoping for better payouts from another ByteDance company, the massively successful app TikTok.
“No one right now wants to help ByteDance expand into significant material marketplaces without them fixing the TikTok situation,” an executive told Billboard last year. And Sony Music’s contract with Resso expired in September, meaning its catalog, including the music of stars like Beyoncé and Doja Cat, is not available on the service.
Streaming subscriptions are a key driver of music industry revenue. Paid subscription streaming revenue cracked $10 billion in the U.S. for the first time in 2022, according to the RIAA, accounting for 77% of all streaming revenue and nearly two thirds of total revenue. This means it’s likely that the music industry will be heartened by Resso’s focus on growing its premium subscriber numbers.
“Their plans in subscription are something we definitely want to encourage,” a major label executive told Billboard last year. “We love to see that huge funnel of a billion consumers connected to a value-creative experience.”
In 2015, before Luke Combs had broken through, his manager, Chris Kappy, gave fans a merchandise discount at concerts for showing they paid to subscribe to Spotify or Apple Music. “I was trying to push people into the digital age as quickly as I could,” he says. “And the fastest way I knew I could do it was giving them $1 off a T-shirt.”
Combs was one of the first country superstars who built his career digital-first. Though most of the recorded-music industry has been streaming-focused for over a decade, until recently country music — and its fans — have remained driven by radio play and album sales. Thanks to artists like Combs, Morgan Wallen, Zach Bryan and others, from 2019 to 2022, country audio streaming jumped 58%, according to Luminate, outpacing the industry’s 48.5% growth and increasing faster than every other genre besides Latin music. In early March, Wallen’s No. 1 album One Thing at a Time racked up 483 million audio streams in its debut week, according to Luminate — the fifth-largest streaming week ever, after albums by Drake, Taylor Swift and 21 Savage. Later that month, Combs’ Gettin’ Old hit 83.5 million streams.
“Finally! Thank God,” says Tim Foisset, senior vp of commercial partnerships for Warner Music Nashville, which represents Bryan. “The A&R’s really good right now, and it appears to be really sticky with a younger audience.”
New stars who are digital natives — and have careers rooted in the digital world — are one key reason for country’s streaming boom. Combs started out on Vine, and Kappy boosted his profile through a Facebook fan group; one of Wallen’s breakthroughs was 2020’s “Heartless,” with EDM star and social media wizard Diplo; Bryan recorded songs on his iPhone and posted them to YouTube. Whereas pop, dance and hip-hop tracks took off at streaming as early as 2011, the country tipping point from physical to digital didn’t start until roughly 2017, shortly before Wallen released his debut, If I Know Me.
“It was the perfect storm of incredible music, the younger demographic that was already gravitating to Morgan at that time and the audience shifting mediums,” says Patch Culbertson, GM and senior vp of Big Loud Records, Wallen’s label. “That rocket exploded, and he carried that audience with him. We’ve seen a massive move onto streaming.”
Another reason for the growth of country streaming is the COVID-19 pandemic, which pulled older fans and digital holdouts away from terrestrial radio and CDs. “Some of the more mature demographics of country weren’t in their cars, they weren’t going to the office, and they used that time to say, ‘OK, I’m going to figure out what streaming is all about,’” says Randy Goodman, CEO of Sony Music Nashville, which represents Combs. “And there are no more boundaries, genrewise. Kids are listening to Kendrick Lamar and to Morgan. It’s a younger demographic we’re appealing to.”
Both Sony’s Goodman and Warner’s Foisset say radio remains “incredibly important,” but add that country hits now often start on streaming, then take off at radio instead of vice versa. In 2019, Goodman explains, “the world began to change,” and country stars followed their pop, hip-hop and EDM counterparts into YouTube, TikTok and Spotify virality long before radio took notice. “From a record-company perspective, we realized we had to make these shifts,” he says.
Wallen has led this transformation: Dangerous: The Double Album racked up 3.6 billion audio streams in 2021, hitting No. 1 in overall consumption that year, outpacing Olivia Rodrigo, Drake and Adele. Last September, tracks by Wallen, Bryan and Combs hit the top 10 on Billboard’s Streaming Songs chart, the first time at least three non-holiday country songs reached the milestone. That week, 13 of the chart’s 50 songs were country; on the chart dated April 15, Wallen has three tracks, and Bryan’s “Something in the Orange” is No. 14. And there’s more to come: Foisset notes that some of country’s biggest young stars, including Cole Swindell, Bailey Zimmerman and Jelly Roll, are scheduled to release albums in 2023.
Country streaming-music fans are unusually dedicated. According to a new Digital Media Association survey, they spent about 1,270 hours per year listening to music annually, about 1.6 times more than country music fans who do not stream. Which is not surprising to Emily Cohen Belote, principal music curator for Amazon Music. The service has emphasized country for years through Country Heat, including a playlist and an online radio station and hit 13 billion streams in 2021. “We’ve been doing this for a while, and it’s not just a flash in the pan,” she says. “Country music is happening in streaming in a really big way.”
Sony Music Entertainment notched one of its most profitable years on record in 2022, as strong growth in streaming subscriptions and a favorable exchange rate propelled the company’s revenue from chart-topping artists like SZA, Harry Styles and Miley Cyrus.
SME’s reported revenue rose by nearly 24% to 1.38 trillion yen ($10.16 billion) and operating income rose nearly 25% to 263 billion yen ($1.94 billion) for the fiscal year 2022, making it the most profitable of the six companies under Sony’s umbrella.
“We have steadily improved our ability to continuously create hits,” Sony chief financial officer Hiroki Totoki said on a webcast, calling out Cyrus’ Flowers release in January. “In Recorded Music, an average of 43 songs ranked in the Spotify weekly global top 100 songs in FY22, increasing our market share significantly year-on-year.”
For the most recent quarter, Sony reported that overall revenues rose 19% to 341.89 million yen ($2.5 billion). Recorded music streaming revenue grew by 23% to 148.9 billion ($1.093 billion) from a year ago. Publishing income rose by 22% to 65.96 million yen ($485 million). SME’s revenues also benefitted from an exchange rate during that period that favored its Japanese parent company’s accounting in yen.
“In recorded music and music publishing, we aim to continue to grow faster than the market and maintain a higher growth rate and profit margin than our competitors by strengthening relationships withinfluential artists, discovering and nurturing new talent, expanding our lineup through The Orchard and AWAL, and growing our business in emerging markets,” said Totoki, who also serves as Sony’s president and chief operating officer.
Executives said on Friday they expect revenues in Sony Music to grow by 2% overall to 1.41 trillion yen ($10.37 billion) for the fiscal year 2023.
The All Access Audio Summit 2023 began Wednesday (April 26), and is set to run through Friday (April 28). Bringing together leaders in radio, podcasting and more, the virtual convention is sparking conversation aimed at optimizing the impact of audio in multiple commercial forms.
Here’s a rundown of highlights from the gathering’s first day (as panels were introduced by Premiere Networks host Angela Yee).
‘What in This Day and Age is Free?’
In the day’s first session, All Access president and publisher Joel Denver chatted with Ginny Morris, Hubbard Broadcasting chairman and CEO, who highlighted a radio air talent’s value as an “entertainer, informer and connector,” with “the ability to move an audience.”
Mused Morris, “Localism and local autonomy are key tenets of what we do. We’re adding local talent in every market we’re in. Without our talent, we’re just another ubiquitous commodity. Those [broadcasting companies] that are committed to talent seem to outlast those that aren’t. And we know we’re not alone, thankfully.”
Morris also touched on AM radio, amid news that the band will not be available in certain vehicles going forward, prompting U.S. Secretary of Transportation Pete Buttigieg to weigh in on AM’s “important role.”
“I think we’re a long way from it disappearing from cars,” Morris said. “I’m involved with the NAB to see to it that all of America has access to all the ways that we’ll provide service in case of an emergency: foreign-language programming… a local baseball or hockey game… or news.”
Denver and Morris also discussed the amount of commercials on radio – a challenge, obviously, that streaming services don’t face with paid subscribers. Per Denver, “We’ve been running radio the same way the last 50, 60, 70 years.” Morris conceded, “We have to make payroll and keep the lights on,” while pointing out that Hubbard stations limit hourly commercials to 12.
“I personally love commercials,” she said, citing financial benefits for both radio and advertisers. “I wish they were more entertaining. We’ve tried to work on our creative and commercial content – it works better for clients, and their business grows.”
Morris reinforced the century-plus history of radio’s “no-trial, no credit-card” model: “What [else] in this day and age is free?”
As for maintaining the medium’s overall place in audio, “Super-serve your local community,” she offered. “We’re making sure we’re earning our place in the lives of our listeners.”
‘Art and Science’
After Jacobs Media president Fred Jacobs presented the results of the company’s Techsurvey 2023, the newest edition of the spotlight on core radio listeners’ media consumption habits, a panel discussed streaming metrics and radio’s traditional reliance on callout research – and where the two meet.
Sean Ross, Ross on Radio editor, advised radio programmers to “listen to music” and “don’t let TikTok have it all,” when it comes to exposing rising songs. “Top 40 is too narrow” in its variety of sounds, he said. “I just don’t think TikTok should be the decider for everybody. It’s one great source, but I don’t think it should be everything.”
Mark Adams, iHeartMedia vp of CHR and program director of KIOI and KYLD San Francisco, echoed Morris’ view that radio, with its air talent, boasts an advantage over streaming. “Listeners are bombarded with choice,” he said. “We have the ability to curate a better experience. It’s about the content, stupid. Are we providing a companion-based music experience?”
The panel also featured Louie Diaz, Cumulus vp of top 40 and rhythmic formats; Alissa Pollack, iHeartMedia executive vp of global music marketing; and Amie Vaughan, 300/Elektra executive vp of promotion and streaming.
“Art and science,” Vaughan marveled. “What a great business we have.”
AI: ‘We Have To Be Careful How We Use It’
Tim Clarke, Audacy senior vp of audio content, led a panel that covered multiple topics, including mulling uncertainties “as we go through the forest with a machete” regarding artificial intelligence.
“The cons are pretty frightening,” admitted Jon Zellner, iHeartMedia president of programming operations, digital music, citing that AI could, among other downsides, lead to higher unemployment. He feels that AI’s most important risk to radio is that it jeopardizes “discovery, surprise, trust and companionship. There are ways we can use it, but it should never be at the expense of a human voice.”
Smith-Richards Collective partner Tim Richards believes that AI can be helpful during a public emergency if air talent is unavailable, by creating familiar-sounding and comforting audio from prior recordings, à la voice-tracking. Still, he cautioned, “We have to be careful how we use it.”
All Access urban/R&B format editor likened the current stages of AI to “the wild, wild west.” He praised that radio programming and sales departments can use it to find out more about audiences, while engineering departments can employ it for technological advances. “The good thing about AI is we can pull the data a little quicker,” he said. Still, “That human factor will always be a part of everything we do.”
The group also discussed radio’s place in breaking new music.
“You just have to be paying attention all the time. There are so many places hit music can come from,” said Rich Davis, iHeartMedia director of CHR and KDWB Minneapolis PD.
Zellner noted research revealing that over 50% of people say that they discover music from radio – a higher share than that of streaming. While he found that stat “surprising,” he feels that listeners like hearing a DJ tell the story of a new song, as “there’s a trust factor.”
Instead of waiting for streaming to introduce hits, “Sometimes you can try to create the story, as well,” said Richards.
Again referencing radio’s role as more than a music service, Zellner directed to air talent that one break in an entire shift might be the only one that a listener hears that day, so make it count. “Make sure everything you’re doing sounds entertaining,” he said. He also advised that a morning show promo that runs throughout that day is essentially a “power song” and should be treated as importantly, by being specific and representative of members’ appeal. “More people will hear the promo than your actual show,” he said. “So make the promo kick-ass.”
“You’ve got to work harder than you ever have before,” offered Richards about radio’s current challenges among so many listener options. “The human attention span is more fractured today than it has been in the history of mankind.”
‘Great Programmers Always Find a Way’
A session on audio production continued the All Access Audio Summit’s first day (with Kelly “K3” Doherty, president and founder of Imaging House, sharing a tip that if anyone looking to record audio can’t get to a studio, solid soundproofing can be found … in a car), followed by a closing segment focused on radio programming.
Moderator James Howard, iHeartMedia regional senior vp in Chicago, declared, “Today is the good old days” for radio, and that programmers should consider “not a wish list, but a ‘can’ list.”
Greg Strassell, Hubbard Radio executive vp of programming, said, “I always quote Steve Rivers, one of my mentors: ‘Great programmers always find a way.’ ”
On recruiting the next generation of air talent, Chris Eagan, Cox Media Group vp of audience and operations, said, “It’s everywhere. We’re a lot more open to letting someone on a radio station than we were 20 years ago. We’re a lot more flexible. If someone shows the talent, or ability, there’s a lot less, ‘Bring me a tape.’ The relationship has sort of flipped.”
The panel, which also included Reggie Rouse, Audacy vp of urban programming and WVEE Atlanta PD, and Tony Gray, president and founder of Gray Communications, cited eager board ops and personalities on TikTok and Instagram, among other social media, as potential on-air voices. Howard suggested bartenders, as they can multi-task and “are great storytellers.”
As for finding hit songs, Eagan cited the importance of simply loving music, as how could one be a chef without liking food? “Be a scholar of music,” he asserted.
Replied Howard, “People love music and animals. If you don’t, you’re a serial killer.”
Meanwhile, as talk turned back to streaming’s place among programmers’ menu of song options, fellow panelist Beata Murphy, PD of iHeartMedia’s KIIS Los Angeles, recalled how the station helped make Encanto’s “We Don’t Talk About Bruno” an unlikely radio hit last year.
“I like to look at streaming, Shazam, other stations,” she said. “But then there’ll be a song every once in while … [“Bruno”] was the No. 1 streaming record, by four times, in Los Angeles. LA is the home of Disney, and it’s a Hispanic-leaning song. We tried it, the jocks set it up properly, it started a conversation, we played the record and then it started testing. That’s something I grabbed from streaming. We set it up properly so it didn’t sound crazy. It worked.”
Murphy further noted, with pride, listener response about “two favorite brands” – Disney and KIIS – “colliding.”
Summed up Strassell about radio in 2023, “Especially coming out of the pandemic, create that awareness. Hopefully your products are great and people will find you. Let’s remind people how great we are.”
Universal Music Group chairman/CEO Lucian Grainge took aim at artificial intelligence again on Wednesday (April 26), this time blaming AI for the “oversupply” of “bad” content on streaming platforms and pointing to user-centric payment models as the answer.
AI tools have exploded in popularity in recent months, and Grainge has been an outspoken critic of generative AI being used to mimic copyrighted works, as with the song “Heart on My Sleeve,” which used AI to generate vocals from UMG artists Drake and The Weeknd.
In fervent comments Grainge made during a call discussing UMG’s earnings Wednesday, the executive said AI significantly contributes to a glut of “poor-quality” content on streaming platforms, muddies search experiences for fans looking for their favorite artists and generally has “virtually no consumer appeal.”
“Any way you look at it, this oversupply, whether or not AI-created is, simply, bad. Bad for artists. Bad for fans. And bad for the platforms themselves,” Grainge said.
The head of the world’s largest music company specifically called out the role of generative AI platforms, which are “trained” to produce new creations after being fed vast quantities of existing works known as “inputs.” In the case of AI music platforms, that process involves huge numbers of songs, which many across the music industry argue infringes on artists’ and labels’ copyrights.
Grainge argued that “the flood of unwanted content” generated by AI could be reduced by adopting new payment models from streaming platforms. UMG is currently exploring “artist-centric” models with Tidal and Deezer, while SoundCloud and Warner Music Group also announced a partnership on so-called user-centric royalties last year.
“With the right incentive structures in place, platforms can focus on rewarding and enhancing the artist-fan relationship and, at the same time, elevate the user experience on their platforms, by reducing the sea of ‘noise’ … eliminating unauthorized, unwanted, and infringing content entirely,” Grainge said on Wednesday.
While UMG continues exploring alternative streaming payment models with partners Tidal, Deezer and others on what form alternative streaming payment models should take, an analyst on Wednesday’s call asked Grainge if, in the meantime, the company would ever consider licensing songs to an AI platform.
“We are open to licensing … but we have to respect our artist and the integrity of their work,” Grainge said. “We should be the hostess with the mostest. We’re open for business with businesses that are legitimate and (interested in) partnership for growth.”
Spotify CEO Daniel Ek said Tuesday (April 25) that, contrary to the widespread backlash artificial intelligence (AI) tools have faced, he’s optimistic the technology could actually be a good thing for musicians and for Spotify.
While acknowledging the copyright infringement concerns presented by songs like the AI-generated Drake fake “Heart on My Sleeve” — which racked up 600,000 streams on Spotify before the platform took it down — in comments made on a Spotify conference call and podcast, Ek said AI tools could ease the learning curve for first-time music creators and spark a new era of artistic expression.
“On the positive side, this could be potentially huge for creativity,” Ek said on a conference call discussing the company’s first-quarter earnings. “That should lead to more music [which] we think is great culturally, but it also benefits Spotify because the more creators we have on our service the better it is and the more opportunity we have to grow engagement and revenue.”
Ek’s entrepreneurial confidence that AI can be an industry boon in certain instances stands in contrast to a steady campaign of condemnation for generative machine learning tools coming from Universal Music Group, the National Music Publishers’ Association (NMPA) and others.
At the same time, companies including Spotify, Warner Music Group, HYBE, ByteDance, SoundCloud and a host of start-ups have leaned in on the potential of AI, investing or partnering with machine learning companies.
The industry is still sorting the ways in which AI can be used and attempting to delineate between AI tools that are helpful and those that are potentially harmful. The use case presenting the most consternation uses a machine-learning process to identify patterns and characteristics in songs that make them irresistible and reproduce those patterns and characteristics in new creations.
Functional music — i.e., sounds designed to promote sleep, studying or relaxation — has become a fertile genre for AI, and playlists featuring AI-enhanced or generated music have racked up millions of followers on Spotify and other streaming services. This has led to concerns by some record executives who have noted that functional music eats into major-label market share.
For Spotify’s part, in February the platformSpotify launched an “AI DJ,” which uses AI technology to gin up song recommendations for premium subscribers based on their listening history, narrated by commentary delivered by an AI voice platform.
“I’m very familiar with the scary parts … the complete generative stuff or even the so-called deep fakes that pretend to be someone they’re not,” Ek said on Tuesday’s episode of Spotify’s For the Record podcast. “I choose to look at the glass as more half-full than half-empty. I think if it’s done right, these AIs will be incorporated into almost every product suite to enable creativity to be available to many more people around the world.”
The world of collecting societies used to be simple: The French SACEM was pronounced “sa-sem,” the German GEMA was pronounced “gay-ma,” the international organization CISAC was pronounced “si-sak” (except in Europe, where it’s usually “see-zak”), and the American SESAC was pronounced “see-sak” (except in Europe, where it’s usually “say-zak”). Then the passage of the 2014 European Union (EU) collecting society directive made things really complicated.
That landmark legislation made the collecting societies compete to represent songwriters and publishers in the online world in Europe. While the European societies would continue to collect from the bars, concert venues and TV and radio stations in their home territories, they would now license to streaming services across Europe compositions from the rights holders they represented. And over the past decade, many other countries — much of the world, with notable exceptions that include the United States, China and Japan — have adopted this system. “All of the societies now compete to sign publishers and creators to represent,” says SACEM CEO Cécile Rap-Veber.
Two global licensing giants are emerging from this competition: SACEM and ICE, a licensing hub formed as a joint venture by GEMA, the Swedish STIM and the British PRS for Music; Peter de Mönnink has run the Berlin-based ICE since early 2022. SACEM, the oldest songwriters collecting society in the world, collects for Universal Music Publishing online in most territories outside the United States, while ICE collects similar royalties for Sony Music Publishing; Warner Chappell Music’s rights are split between the two.
The societies behind ICE are also formidable on their own. Under CEO Andrea Martin, PRS for Music collected 777.1 million pounds ($960.3 million) in 2021, the last year for which results are available — a 22.4% increase over the previous year on a constant currency basis. Also in 2021, GEMA revenue increased 8.4% to 1 billion euros ($1 billion); the Munich-based society is expected to name a new CEO by summer because Harald Heker, who has helmed it since 2007, is said to be retiring this year. (By comparison, SACEM took in 1.1 billion euros [$1.2 billion] in 2021.) STIM had 2.2 billion kronor ($213.2 million) in 2021 revenue, up 13%, although Sweden is a far smaller country. (These financial results reflect 2021, since not all of the societies have released their 2022 numbers.) STIM has always been more important because “there is an exceptional demand for Swedish music,” says CEO Casper Bjørner, “and STIM has a strong focus on innovation of digital services for our members.” Besides its work with ICE, STIM also has a deal with a PanAsian licensing hub run by the Australian society APRA.
The budgets these societies possess give them the ability to compete globally — not all the smaller societies have the budgets to develop the technology to handle all the data that digital service providers offer. But the growing number of works they represent also give them more negotiating leverage. The interests of big and small societies alike, as well as those of creators in general, are represented by CISAC, a trade organization of collecting societies led by director general Gadi Oron.
Competition is usually collegial but fierce. SACEM has made deals to represent rights holders and societies from the Middle East and Francophone Africa, while ICE and PRS for Music have done better in English-speaking Africa. And, much as the EU envisioned, that competition among societies gives them an incentive to aggressively represent the interests of their clients. “We want to be the best collecting society in the world,” says Rap-Veber, “both in terms of revenue and also getting creators the most money possible.”
This story originally appeared in the April 22, 2023, issue of Billboard.
Nir Zicherman, the executive overseeing Spotify’s audiobooks expansion, is leaving the company at the start of October after more than four years as an executive at the audio giant.
In an interview with The Hollywood Reporter, Zicherman — currently the the vp and global head of audiobooks at Spotify — said he is departing to return to his “entrepreneurial roots with a new project in the startup space.” Zicherman first joined Spotify in 2019 after the company acquired Anchor, the podcasting platform that Zicherman co-founded with Michael Mignano, as part of Spotify’s podcast product division. He was later tapped to oversee Spotify’s growing audiobooks business, which formally launched last September with an à la carte model but has faced setbacks in user adoption in part due to Apple’s App Store policies around in-app purchases.
“After a total of 9 years working across Spotify and Anchor, I’ve decided that it’s time for the next chapter in my career,” Zicherman, whose last day is Sept. 30, told THR in an email. “I’m extremely proud of the work the team has done, and now that we’ve successfully established a foundation, I’m excited about what’s next for audiobooks at Spotify — but I’m an entrepreneur at heart, and on a personal level, I’m excited to be getting back to the startup world. I felt that now was a good time to begin that transition, as the team at Spotify is set up well for success in our future work.”
As Spotify begins the search for Zicherman’s successor to lead the company’s audiobooks product strategy, Spotify’s vp business affairs, David Kaefer, will continue overseeing the business side of the audiobooks expansion.
Zicherman, whose upcoming departure was first reported by The Verge, is the latest in a string of podcast-adjacent executives at Spotify to leave. In the past year, those exits have included Courtney Holt, a major dealmaker for Spotify’s podcasting expansion; Mignano, the Anchor co-founder who left to become a partner at Lightspeed Venture Partners; and Dawn Ostroff, the chief content and ad business officer.
In addition to Zicherman, upcoming executive departures include Max Cutler, the company’s top creator partnerships executive and founder of the Spotify-acquired podcast studio Parcast, who is set to leave in May. In announcing his decision to leave in February, Cutler told staff that he was similarly leaving Spotify to “return to [his] entrepreneurial roots” and launch his own venture, though has not yet shared additional details on that business.
This article was originally published by The Hollywood Reporter.
Spotify founder/CEO Daniel Ek is meeting with members of the United States Congress and the Biden administration this week in Washington, D.C., to urge them to pass legislation that would rein in the “stranglehold” companies like Apple have over the competition on their app stores. The executive revealed in a Wednesday (April 19) post on Spotify’s For the Record blog after teasing in a tweet on Sunday that he was headed to the U.S. capital.
The Open App Markets Act — which was introduced in August 2021 and which Ek has previously lobbied for — would bar Apple, Google and other app stores with more than 50 million users from forcing app developers to use their payment systems as a condition of distribution. It would also block app store owners from punishing app developers if they extend deals to customers or offer their app for lower prices elsewhere.
While the bill was advanced by a Senate committee last year, no further action was taken. With this trip, Ek is looking to train a renewed spotlight on the bill, which he hopes will be resurrected for a wider vote by the new Congress.
Apple has lobbied against the bill, arguing that it could lead to consumers loading apps onto their smartphones from places outside of its centralized app store, introducing potential privacy risks.
Apple did not respond to a request for comment for this story.
Ek has argued that Apple and others act as anti-competitive gatekeepers because the terms required for inclusion in their app stores prevent Spotify and others from telling consumers about new products or deal offers.
“Apple prohibits competition by not allowing developers to discuss new products, features, and deals with their own users,” Ek wrote in an editorial posted to Spotify’s blog on Wednesday (April 19). “For instance, Apple promotes deals for Apple Music to Spotify customers, but denies us the same privilege.”
Read Ek’s full editorial on Spotify’s For The Record blog here.