Finance

Netflix plans to offer cheaper, ad-supported tiers to consumers within a year or two as it pushes to tap a wider set of potential customers amid stiffer competition from rival firms. The firm, which reported a loss of 200,000 subscribers in the first quarter, will introduce the ad-supported plans to give customers more choice, company co-chief executive Reed Hastings said on an earnings call.

Source: Netflix to introduce ad-supported plans in a major shift

Netflix shares plummeted more than 20% in after-hours trading after the company announced that it actually lost ground in terms of subscribers, falling to 221.64 million around the world. Usually, the question when Netflix reports numbers is about how many new customers it managed to acquire. This time, its global subscriber base declined by 200,000 from where the company ended 2021.

Source: Netflix Stock Takes Another Dive As Streaming Giant Posts Q1 Subscriber Reversal

On the eve of a hearing and vote for the Free Artists From Industry Restrictions (FAIR) Act before the California Assembly’s Committee on Arts, Entertainment, Sports, Tourism and Internet Media, Assemblymember Ash Kalra (D-San Jose) has pulled the bill with plans to move it forward as two bifurcated bills.

Source: FAIR Act Bill to Repeal California’s ‘Seven-Year Statute’ Amendment Pulled the Day Before Hearing

Today (April 19), GoDigital has confirmed that it’s investing its largest funding round yet into Cinq – USD $100 million – in order for Cinq to “purchase music rights, both masters and publishing, and to further its international expansion”. In a press release, GoDigital confirmed that its music portfolio is backed by Bank of America as lead lender, with East West and Union Bank rounding out the syndicate.

Source: Cinq Music raises $100m from parent GoDigital to buy music rights, expand internationally

US-headquartered music distribution and payments platform Stem has today (April 18) confirmed that it’s raised a $20 million new round of funding. The investment is being led by QED Investors, a significant venture capitalist firm in the fintech space. It’s also being supported by Block, Inc., a global tech and financial services company.

Source: Music distribution and payments platform Stem raises $20 million in fresh funding round

Streaming company Deezer has reached a definitive agreement to combine its business with I2PO, a Special Purpose Acquisition Company (SPAC) based in France. As a result, Deezer is to publicly list on the Euronext Paris, seven years after its last attempt at an IPO failed. On a fully diluted basis, the I2PO merger gives Deezer a pre-money equity valuation of EUR €1.050 billion (USD $1.13bn at current exchange rates).

Source: Confirmed: Deezer, with a $1.16bn valuation, is going public via merger with SPAC in France

Artists and actors are squaring off with record labels and film studios over a California bill that would limit how long entertainers can be held in exclusive contracts. The Free Artists from Industry Restrictions Act would overhaul California’s Seven Year Statute, removing a damages provision that discourages artists from leaving record deals after seven years and curtailing the amount of time actors are held off the market without pay between seasons.

Source: Musicians, Actors Seek Overhaul to California Contract Law

Globally Netflix announced it expected to add only 2.5 million new subscribers in the first three months of the year, well down on the 4 million in the first quarter of 2021. The news has helped wipe almost $45bn (£33bn) from its value as investors worried Netflix’s glory days were over.

Source: If Netflix is stumbling will Wall Street renew or cancel?

Lauryn Hill has come out in support of the FAIR Act, which would prevent record labels from suing artists who exit contracts prematurely. On Thursday (April 14), the eight-time Grammy-winning singer/rapper made a public plea to members of the California State Assembly’s Committee on Arts, Entertainment, Sports, Tourism and Internet Media to support the FAIR Act, also known as Assembly Bill 2926.

Source: Lauryn Hill Champions California Bill to Limit Record Labels’ Power: ‘Greed Often Perverts’

French music streaming service Deezer is nearing a deal to go public by merging with a special purpose acquisition company backed by the family behind luxury titan Kering SA, according to people familiar with the matter. The Paris-based competitor to Spotify Technology and other music streamers has 16 million active users and is available in more than 180 countries, according to its website.

Source: WSJ News Exclusive | Spotify Rival Deezer Nears Deal to Go Public