...That's hot takes, not hot cakes 🥞. Sorry.
Spotify just can't stay out of the news. Love 'em or hate 'em, you can't ignore 'em. Here are their top headlines of the week.
Hot take: The major labels still hold all the leverage, and the new negotiations are benefitting label executives (higher upfront guarantees) and hurting artists (lower royalty rates). Spotify needs to find a way to profit, which will be advertising and more paid subs.
Hot take: This will be a good thing for indie artists AND consumers only if (1) sponsored songs are marked as ads, (2) the algorithm only suggests relevant songs, and (3) they are not served to the paid tier of subscribers.
Hot take: Messenger now has a whopping 1.2 billion monthly active users. This is a pretty fun feature, but will users ever instinctively go to Messenger to start a playlist? I doubt it.
Hot take: The more the merrier! Maybe one step closer to Spotify on Xbox One?
Hot take: Sean's job is done. He negotiated the initial licenses, and brought Spotify to the US. They now have to learn how to run a technology company, not a music company.