Strategy in TECH...
Spotify Technology, S.A. announced that it will lay off approximately 1,500 employees, or about 17% of its entire staff. The company says the cuts are necessary to adjust operations for a very different operating environment than it anticipated when it built staff to drive growth in 2020 during the pandemic.
These are not its first layoffs in 2023…
Just one day after I posted the story Tech Takes a Turn…Downwards, we learned of more layoffs hitting tech, including Google parent Alphabet, Spotify, Vox Media, and more. These additional reports of even more tech layoffs only help to affirm the reality of a slowdown hitting big tech and other areas that are adjacent to tech, such as media focused on tech.
Tidal, the musician-owned music streaming service put together by rapper Jay Z, announced this week that it has sold a third of the company to telecom giant Sprint. Although the original announcement did not disclose the price, Billboard, the music industry trade journal, said that Sprint invested $200 million for a 33% stake in the company.
If I were Jay Z’s publicist, I’d be nervous right now. The popular rapper’s reputation as a savvy businessman is in serious jeopardy. Billboard, one of the oldest and most prominent music industry publications, has recently launched a new annual survey of the top “A-list music business professionals.” In order to capture their honest opinions, the survey is conducted on an anonymous basis. While not exceptionally detailed or deep, the survey is meant to cover a “broad range of temperature-taking topics.”
The results of this inaugural effort offered some surprises – including the fact that more than 7 out of 10 of these top music industry executives predict that the Tidal music streaming service won’t survive its first year – a remarkable no-confidence vote in Jay Z, Tidal’s owner.
Tidal Music Service has, for the second time in only a matter of months, dismissed its CEO. According to a report in the Wall Street Journal, Tidal has dismissed interim chief executive Peter Tonstad who held the position for only about three months. In a statement, they thanked Tonstad for his service.
Just days after Apple, Inc. announced its plans to attempt to reassert its leading role in the music distribution and streaming businesses, we learn from the New York Times that two powerful state attorneys general in New York and Connecticut have launched an investigation into Apple’s music licensing practices. The purpose of the investigation is to determine if Apple has broken any antitrust laws in cutting deals that allegedly restrict music industry providers from offering their content on a free basis with other services.
The narrative surrounding Tidal, the latest music streaming service to enter the increasingly crowded music delivery market last year, has taken a new and unforeseen turn with the purchase of the service by Jay Z. Originally conceived as a pay music streaming service offering a higher performance alternative to the ad-driven free services of highly compressed music streamers such as Pandora and Spotify, the Tidal narrative was one of quality. Now?
In a conference call with the press last Thursday, Russound executives proudly announced that they have closed a deal to offer Spotify streaming music content in Russound products. Spotify, one of the two most popular music streaming services in the United States, has very high international demand, Russound says – noting that this new agreement will help stimulate global demand for Russound products.
Spotify, the popular music sharing app, announced today that it will offer streamed music to smartphones for free (ad-supported), starting today. Spotify has long offered this capability on desktop computers for free (again supported by advertising), but had required a paid subscription (ad free) for mobile devices. Now…everything changes.
The company also announced that it has exclusively licensed the rights to stream music from rock icons Led Zeppelin…also starting today.
<January 25, 2012> Onkyo Corporation had a very busy CES, not just because of the recent news of their strategic partnership with Gibson Guitar (and subsequent to CES, a partnership with Teac), but because the company was showing and demonstrating new technologies recently announced that will enhance their soon-to-be-released receiver line up. Paul Wasek, Onkyo National Marketing and Product Planning Manager, took the ALERT around the Onkyo booth to show and demonstrate these technologies. [Read more…] about Onkyo Demos New Technologies at CES
