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In this week's edition of Indie Insider, we dive into the latest industry news, including Alexis Lanternier's appointment as Deezer's new CEO, the formation of the Organization for Recorded Culture and Arts (ORCA) by leading indie labels, and Spotify's impressive growth in Q2 2024.
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Hey everybody!
Welcome to the latest edition of Indie Insider, your go-to newsletter and podcast for all of the latest updates from the wild world of independent music. We're here to keep you updated on the latest industry news, share insights, and provide tips to help you navigate the ever-evolving music landscape.
Before we start, a quick word from our sponsor, my company, Habitat Financial. If you’re a record label, music publisher, or distributor looking to streamline your royalty processing or financial operations, look no further than Habitat Financial. With plans that let you get started for free and scale with you as you grow, Habitat ensures that you save time and money managing the nitty gritty financial work that all music companies deal with. From royalty processing to payments and tax filing, Habitat Financial lets you focus on the music while making still making sure all your financials are in order.
Alright, let’s dive into this week’s highlights!
Deezer has a new CEO. Alexis Lanternier will head the innovative French DSP, effective September 2, 2024. Lanternier—a seasoned entrepreneur and executive with experience at Walmart Canada and Alibaba’s Lazada—brings a wealth of expertise in building digital consumer goods platforms across Europe, Asia, and North America.
Lanternier's appointment signals Deezer's commitment to continued growth, innovation, and willingness to look outside of the music industry for key hires. Under his leadership, Lazada became one of the largest e-commerce platforms operating in Southeast Asia. His background in e-commerce and his success suggest that Deezer is poised for exciting transformations. For indie artists and labels, this change could mean new opportunities for better artist compensation and enhanced music experiences. What isn’t entirely clear yet is how Lanternier’s traditional e-commerce experiences will play in the music industry. Running a major DSP is certain to be different than his previous roles and will require a period of adjustment for him. I'd expect him to embark on a listening tour, and to try to bring an outside viewpoint to the company.
Several leading independent music labels have launched the Organization for Recorded Culture and Arts (ORCA). ORCA is a think tank that aims to highlight the economic, social, and cultural value of music. Founding members include renowned labels such as Because Music, Beggars Group, Ninja Tune, and Sub Pop Records.
Their mission is to promote a thriving music ecosystem that supports long-term, well-paying jobs and enriches communities.
If you’re curious to sample the kind of work they plan to do, check out their first report, "Setting the Stage: How Music Works." The report provides an introduction to the music industry and emphasizes its economic and cultural benefits. You can find a link to it here. Fair warning, the report is oriented towards folks working outside the music industry—veterans might find some of the information redundant, but it also might offer new perspectives.
Why Should You Care? For indie artists and music business owners, ORCA represents a collective effort to strengthen the music industry. As a think tank, their research and advocacy can lead to better policies and greater recognition of music's impact. This, in turn, can result in more support and resources for indie musicians. It’s worth following them on socials and checking out their reports as they come through. One question that I have, is if ORCA will be active in any lobbying efforts on behalf of the independent community.
Spotify reported a significant growth in its Premium Subscriber base, adding 7 million new subscribers in Q2 2024, bringing the total to 246 million. This growth contributed to a record high quarterly profit, with revenues driven by increased subscriber numbers and higher average revenue per user (ARPU). It also announced its second consecutive quarter of profit, marking what could be a major turning point for the company as it finally reaches sustainable profitability
Spotify’s success is attributed to strong subscriber gains, improved monetization strategies, and successful price adjustments in developed markets. The platform also saw a rise in monthly active users (MAUs), reaching 626 million globally.
Spotify’s growth indicates a robust and expanding platform even as it finds itself at the center of lawsuits, controversy, and general ill-will within the independent industry. This continued growth suggests that the music industry still has a way to go until it reaches it ceiling in the streaming era. This in turn means more potential listeners for your music. The increased ARPU suggests that subscribers are willing to pay more, possibly reflecting a higher perceived value of the service and thus of music itself. This could lead to better payouts for artists if Spotify takes the imitative to make that a priority. I for one favor continued price hikes for the service, provided that the revenue generated by those hikes finds its way to the creators and rightsholders that give Spotify all its value.
One Fun(ish) Thing
14 National Basketball Association (NBA) teams were accused of willfully using music without the proper license in TikTok videos and across social media. This highlights how far the music industry has to go when it comes to ensuring that users of music copyrights understand why, how, and when they need to acquire the proper licenses for music usage.
Ok, as always, I want to know what you’re thinking about these days—What are the most exciting things happening with your music company, what sorts of stories do you want to hear more of, etc. You can find my inbox at calvin@habitat.financial, or drop me a comment in the post.
If you haven’t’ already done so, check out our longform podcast, Indie Insider, for interviews with music industry veterans each with amazing insight into how to make music a sustainable career. Our next episode will feature Kodi McKenny talking about how he built Marauder & his recent shift into independent music consulting.
Until next time,
Cal
