This has the most the most ominous looking chart in the portfolio
Some recent business change activity:
Not sure if this marks anything particularly positive.
Still hopeful they might pull something out of the bag q4 with new app release. However, looking on their app recently question is this :why would you sign up with Napster with no free tier to trial it at £12.99 pm when Spotify is £9.99 ?
hopefully they’ll work out something to give them an edge, otherwise this could be a lost cause.
Can you link where it says £13? Website says 10
I downloaded the application on iPhone and that’s the only price option it gave.
That must be their protest against Apple’s 30% cut then.
Says £10 a month after a 30 day free trial on mine.
Doubt they would over-price themselves.
Can’t help but think they should emphasise the better royalties for performers they give. I am in no way an expert in the situation but heard they do give better. If they maybe did a little more and got some stars on board to promote this side of their business model then they really could get a major boost.
They don’t give better royalties. The artists are still under contract with the labels and those deals decide the royalties.
The per stream rate can be pushed up because people on the service listen less.
So if there was £10 of revenue and 10 streams, each stream is worth a pound. But if the users become more engaged and in the next month there is 100 streams each stream is worth 10p.
Spotify’s rate is seemingly low because it’s users are way more engaged than other services
Really? I saw on the news that Spotify give bigger % to big bands than smaller even when taking number of streams into account. Like I said I am in no way an expert but that was my understanding. And yes the labels are a bigger problem but the streaming services are getting a lot of flack as well at the moment.
I have also heard shady things about Spotify’s distributions and especially it’s metrics but haven’t had the time to dig.
@PoemofXtasy It seems that Napster do give better royalties. and by quite a bit it seems but I get the whole volume bit.
It is an old article but updated for 2021
Per stream rate and royalties aren’t the same thing. the per stream rate is higher because users are less engaged with the service.
If all artists migrated to Napster for the higher per stream rate, the rate would sink and become more inline with the other services
At least for audio content, I’m not 100% how it works for video content
Yep, bit misleading name really.
But surely if all the artists migrated that wouldn’t change the per stream rate as you would still get the same per stream. If I buy Napster I listen to X amount of tunes end of story. Who I listen to doesn’t change the number of streams I listen to, it would just mean I may listen to others but the per stream rate would still be the same.
If they had more customers it would mean they would get more listens as well so not affecting the per stream rate. I just don’t see the logic, and can’t find online, how the rate would drop. People who buy streaming services will listen to the same amount of tunes irrelevant and the dedicated cash from subscription would be split between number of listens. This means the number of artist or customers shouldn’t affect the royalties or per stream rates.
Surely the only way the rate would decrease would be if the subscribers suddenly listened to lots more per month to lower the rate % which isn’t a realistic theory.
Also, bearing in mind they don’t actually advertise their numbers it is pure speculation as to how it would be surely.
Yeah i wasn’t very clear there - you are right. What effects the rate is the total number of streams from users (and the streams per user average). If everyone migrated and streamed the same number of songs as the average napster user now, the rate would not drop. Might point really was using the per stream rate to compare the fairness of DSPs payouts doesn’t really capture the full story.
I think it is a realistic theory that users will stream more. Streams could be used as a proxy for engagement which could be used as a proxy for the chance a subscriber may churn. The services want to increase engagement with their service so people don’t churn which should mean more streams and then the rate would drop.
DSPs can control to an extent the number of streams also through things like auto play etc.
Yeah i am assuming napster are licensed on the same model as spotify