Finance

Spotify Stream Minimum Cost Indies $47M in 2024, Exec Estimates

According to one music industry exec’s estimate, the controversial Spotify stream minimum cost emerging artists $47 million during 2024. As many know, that approach sees Spotify pay recording royalties only for tracks with at least 1,000 annual streams. Implemented (along with other changes) at the behest of the majors, the revamped model is effectively preventing the vast majority of uploaded recordings from generating payments.

Source: Spotify Stream Minimum Cost Indies $47M in 2024, Exec Estimates

Charles Goldstuck’s GoldState raises $500m to buy music rights, 

According to the announcement on Thursday (April 17), the strategic capital raise includes “a structured capital facility” co-led by Northleaf Capital Partners and Ares Management funds, as well as “separately raised leverage”. Additional terms of the private transaction were not disclosed. Goldstate’s new backerAres Management Corporation is a giant of the alternative investment space.

Source: Charles Goldstuck’s GoldState raises $500m to buy music rights, with investment from Northleaf Capital and Ares Management

Netflix is revamping search with AI to improve discovery 

Netflix is building a new search experience aimed at improving the discovery experience, and it’s going to use AI to do it, the company’s CEO Greg Peters said during its first-quarter results conference call. Peters said Netflix is working on “interactive search that’s based on generative technologies” to help people find different titles.

Source: Netflix is revamping search with AI to improve discovery | TechCrunch

Netflix Is “Paying Close Attention” to Tariffs Talk, Says It’s ‘Less Exposed’ Than Others

Asked on Thursday’s earnings call about the current worldwide economic uncertainty, which for lay people means President Trump’s tariffs, Netflix co-CEO Greg Peters acknowledged he is “playing close attention, clearly, to the consumer sentiment and where the broader economy is moving.” Not that he and his fellow co-CEO Ted Sarandos are worried.

Source: Netflix Is “Paying Close Attention” to Tariffs Talk, But Believes It’s “Less Exposed” Than Others

Pex acquired by copyright protection and content monetization company Vobile

Los Angeles-based Pex, an audio content identification platform, has been acquired. Pex’s new owner is a company called Vobile, which offers digital content protection and transaction services for entertainment companies, platforms, sports leagues, music labels, and publishers. Vobile has confirmed that Pex COO Amadea Choplin has joined the company as Head of Music Business, while founder Rasty Turek, formerly CEO, will act as a consultant to Vobile going forward.

Source: Pex acquired by copyright protection and content monetization company Vobile

Deepfake Detection Startup Loti AI Secures Additional $16.2 Million in Series A Funding

Deepfake detection and takedown service Loti AI has secured an additional $16.2 million in series A funding led by Khosla Ventures with additional investments from FUSE, Bling Capital, and Ensemble. This brings the startup’s total raised to date to $23 million. Loti AI is working to drive development and market expansion of its likeness protection technology, which initially launched for public figures and celebrities.

Source: Deepfake Detection Startup Loti AI Secures Additional $16.2 Million in Series A Funding

Alphabet Faces Investor Concern About AI Challenge to Search Business 

Investors are concerned that Alphabet’s dominance in search means it has nowhere to go but down, that the company has fallen behind its competitors in AI, that it is making substantial investments in AI, and that younger consumers are using AI services rather than traditional search, according to the report. Since January 2023, around the time OpenAI’s ChatGPT appeared, Alphabet’s share of the global market for search engines has slid from 92.9% to 89.6%, the report said.

Source: Alphabet Faces Investor Concern About AI Challenge to Search Business | PYMNTS.com

Epidemic Sound’s revenues jumped 29% to $181.6m in 2024, as EBITDA soared 150% 

Financial highlights from the report include a 29% YoY jump in revenues, to 1.921 billion Swedish kronor, or USD $181.62 million at the average exchange rate for 2024. Epidemic’s adjusted EBITDA, meanwhile, soared 150% YoY to SEK 147 million ($13.9 million), while unadjusted EBITDA increased 24-fold to SEK 107 million ($10.13 million).

Source: Epidemic Sound’s revenues jumped 29% to $181.6m in 2024, as EBITDA soared 150% YoY to $13.9m

And After All That, TikTok Could Still Go ‘Poof’

After inching oh-so-close to a deal to secure TikTok in the US, China apparently pressed hard pause on the arrangement following Trump’s tariff slap. So what does that mean for the music industry? If you love uncertainty, this one’s for you. Trump is now extending the ban by another 75 days, though a hard clock is now ticking on a deal that was apparently 99% done. Apple is seeking White House assurance that the app can remain on its App Store.

Source: And After All That, TikTok Could Still Go ‘Poof’ – Digital Music News

The Silent Collapse: Generative AI’s Erosion of Photo Licensing Revenue 

Shutterstock reported full-year 2024 revenues of $935.3 million (up 7%), partly driven by the acquisition of Envato and $104 million in AI content licensing revenue—a figure projected to rise to $250 million by 2027. Meanwhile, Getty Images’ Creative revenue declined by 4.5% in 2024 despite overall corporate growth. This decline in core stock licensing, offset by growth in editorial and AI-related services, suggests an internal shift rather than expansion.

Source: The Silent Collapse: Generative AI’s Erosion of Photo Licensing Revenue – Kaptur

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