In today's CMU Daily: Yet more reports are circulating that Spotify will launch a higher priced ‘Supremium’ tier later this year, offering higher quality audio and additional playlist tools for an extra $5 a month. Will people really pay more? And if they do, what does that look like for Spotify’s business model?

One Liners: Music.AI deal; DawBell, Universal, BMG, Frontiers appointments; Peterborough’s Glastonbury big screen; NTIA manifesto; MMF report; Enter Shikari, Ski Mask The Slump God live dates; new releases from Ahnoni And the Johnson, Hinds, Johnny Foreigner, Knife Bride

Also today: 2Point9 Records sues Ministry Of Sound Recordings over ‘Ride It’ remix; Easy Life return as Hard Life with easyJet dissing lyrics; Martin Shkreli ordered to hand over any copies he sneakily made of single-copy Wu Tang album

Spotify needs to find a path to consistent profitability. Are high res audio and AI playlists really the answer?

According to Bloomberg, Spotify will finally launch a long-rumoured high-priced premium tier later this year, aimed at the streaming platform’s “most ardent users”. Part of that new tier will be high resolution audio - something that has long been missing from Spotify, and has become an increasingly visible omission as other platforms double down on innovative high resolution audio formats including Dolby Atmos and Apple’s Atmos-based Spatial Audio.

Does anyone really care about premium audio?

The inclusion of high resolution audio is not only a no-brainer for Spotify, it’s pretty much essential if it wants to introduce a new tier. However, premium audio in its own right has proven to be a bit of a commercial flop, and most other streaming platforms which were offering a standalone premium audio product have folded that down into their standard premium subscription.

So there may not be enough people who care about premium audio in its own right for it to be a significant driver of increased revenue for Spotify. Which is, presumably, why there’s something else being thrown into the mix. This will be in the shape of “new tools for creating playlists and managing song libraries”, according to Bloomberg.

Those new playlisting tools, says Bloomberg, will allow users to “instantly generate custom playlists for certain activities, dates and times of the year” - which sounds very much like a full roll out of Spotify’s previously hyped AI playlist tool, which Spotify pushed out as a beta to premium subscribers on mobile in the UK and Australia at the start of April.

That feature, said Spotify at the time, allows users to “effortlessly turn your most creative ideas into playlists” including, it suggests, making “a playlist that makes me feel like the main character”. This is achieved by pairing Spotify’s “powerful personalisation technology with AI to deliver the perfect musical mix, just for you”.

Are people going to be happy to pay more?

However, the new higher-priced tier is set to cost “at least $5 more per month” - a price that will, says Bloomberg, “vary depending on each user’s base plan but will average out to about a 40% markup”.

This means that individual Spotify premium users will be paying as much as $60 a year more. Meanwhile, Family Plan users - who pay £19.99 in the UK, or £17.99 if they opt out of audiobooks - could face a price hike of nearly £100 a year. On the face of it users aren’t getting a whole load more for that significant jump in pricing.

A lot of the success of Spotify Supremium will be about creating a compelling offer for existing subscribers - or entirely new subscribers - that persuades them to opt into a new plan and pay more. While there have been a number of recent price rises, that's a passive decision - do you stay and swallow the price rise, or do you cancel your subscription? Opting into an entirely new tier and paying more is a much more active choice.

For many Spotify users an incremental price increase is a necessary evil - accepted, even if somewhat reluctantly, because the reality is there’s no real alternative choice. Sure, you can move to a different streaming platform, but you’ll pay pretty much the same, for the same service.

Spotify’s playlist moat

Music streaming is unlike video streaming. With video streaming there are different content offerings across different platforms and some users will chop and change depending on what shows are on what platforms. With music streaming, the service offering has very little differentiation across platforms: premium subscribers have unlimited access to all the music, all the time.

Not only is there less incentive to change platform, but there are active disincentives. Again, unlike video streaming platforms where you may watch a show once, music streaming is about repeat listening. Repeat listening, it turns out, is something that Spotify is pretty good at, compared to some other streaming services.

Spotify users appear to listen to more music than users of other platforms, a fact which is hinted at by the higher “average per stream rates” paid out by some other platforms. While part of this comes from the fact that some platforms do not offer free or ad-supported tiers, there’s also evidence that suggests that Spotify’s premium users listen to more music than paying users on other platforms - meaning that the pot of money is shared between more people, reducing the overall “per stream” rate.

On this front, playlists are arguably Spotify’s killer feature. Early on, the ability to create playlists tapped into many people’s desire to curate their own listening, picking and choosing their favourite tracks to create the perfect soundtrack to their day.

As other music streaming services launched and grew, playlists became a moat for Spotify, and a lock-in for users: migrating playlists to other services was challenging at best, and simply impossible for most, and for many people Spotify’s playlist features were just better. This meant unhappy Spotify users looking to switch music streaming service faced a bleak choice: stay with Spotify, or switch elsewhere, but lose your carefully crafted playlists, and potentially have a less well executed playlist experience.

So Spotify has a lock-in on existing users, which is good for the long term viability of its business. Getting more money out of those users is a different matter...

Can Spotify make it work?

ICA // Music Event Manager (London)

Chalk Press Agency // Senior Music Publicist (London)

SJM Concerts // Event Ticketing Manager (Manchester)

Sentric Music // Revenue Optimisation Manager (London/Liverpool)

Sentric Music // Copyright Manager (Liverpool/London)

AXS Europe // Marketing Manager (Birmingham)

Solar // Finance Manager (London/Hybrid)

BSI Merch // Digital Content & Campaign Manager (London)

terrible* // Finance Assistant/Bookkeeper (London)

Secretly Distribution // UK Account Relations Director (London)

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ONE LINERS

Glastonbury, Music.AI, Enter Shikari + more

DEALS

AI-powered B2B music platform Music.AI has announced AI multitrack mixing service RoEx as its latest partner. “What excites me so much about RoEx’s inclusion in the Music.AI ecosystem is its ability to take existing audio content and significantly improve its mix quality”, says Matt Henninger, VP Business Development And Sales at Music.AI. “Companies that are currently leveraging AI technologies to separate, replace or augment content can now quickly and efficiently blend together the audio components at scale”.

APPOINTMENTS

PR firm DawBell has promoted Kate Etteridge to Managing Director. She joined the company as Head Of Press in 2014. "We are THRILLED Kate has taken this role”, says co-founder Stuart Bell. “She’s been pivotal to our growth and we love working with her. She's immensely talented and incredibly modest. She’s perfect to help lead DawBell on to even bigger and better things”.

Universal Music India has announced two promotions. Sanujeet Bhujabal is now Managing Director, and Viral Jani Chief Revenue Officer, of Universal Music India And South Asia. "It reflects the company's commitment to growth and development of one of Universal Music Group's most important emerging markets”, says Adam Granite, CEO of Universal Music Group AMEA, of the promotions.

BMG has announced a new leadership structure for its frontline recorded music division in the US. Jon Loba is now President of Frontline Recordings for The Americas, covering the US, Canada, Mexico, and Brazil. Meanwhile, JoJamie Hahr becomes EVP Recorded Music at BMG Nashville; Dan Gill is EVP Recorded Music on the West Coast; Cyndi Lynott moves up to SVP Marketing; Sean Heydorn becomes SVP Rise Records; Tim Reid is SVP Repertoire & Marketing; Shane Cosme is SVP International Marketing; Jecoure Lamothe becomes VP A&R & Marketing; and Zarah Ortiz is now VP Repertoire & Campaign Management. Room for one more? Bryan Columbus has joined the company as VP Recorded Music.

Frontiers Label Group in Italy has appointed Aldo Lonobile as Head Of A&R for Europe. Also an in-house producer at the label, he first became involved with the company when it signed his band Secret Sphere. “What began as a collaboration swiftly evolved into production and songwriting roles”, he says. “This journey has led me to the A&R position, where I prioritise honouring the artist’s vision. We're embarking on an exciting new chapter with Frontiers”.

LIVE BUSINESS

If you’re still annoyed that you’re not going to Glastonbury this year, how about the next best thing? That's right, you will be able to watch the whole thing unfold on a big screen in Peterborough city centre. “It’s a fantastic opportunity for locals and visitors to experience the spirit of one of the world's most famous music festivals in an intimate setting and without the mud”, says Pep Cipriano, COO of Peterborough Positive, which is putting up the screen. It’s also a good way to try to forget you’re in Peterborough.

The Night Time Industries Association has urged UK political parties to prioritise the night time economy in the run up to the general election and beyond. Among the proposals put forward in the NTIA’s manifesto is the appointment of a minister for the night time economy and reform of the VAT system. “The night time economy is a critical component of our cultural and economic landscape”, says CEO Michael Kill. “These measures are essential for its recovery, giving it the ability to grow and fuel regeneration. We urge all political parties to consider these important recommendations”.

ARTIST MANAGEMENT

MMF has published a new edition of its Managing Expectations series of reports. It finds that 90% of artists managers in the UK are self-employed and 60% are earning less than minimum wage from their management work. However, management companies’ investment in skills and training is up 30%, and 17% of those surveyed said they earn over £50,000 a year.

GIGS & FESTIVALS

Enter Shikari have announced a run of UK shows in smaller venues than they’d usually play. “People often travel considerable distances to come to live shows, so we feel it’s important for us to make the effort as well sometimes and play places that your standard tour wouldn’t normally”, says frontman Rou Reynolds. Tickets go on general sale on 19 Jun.

Ski Mask The Slump God has announced UK shows in September, finishing with a show at the Kentish Town Forum in London on 11 Sep. Tickets will be on sale on Friday.

RELEASES

Anohni And The Johnsons have released new single ‘Breaking’.

Hinds have released their first Spanish language single ‘En Forma’. Their new album ‘Viva Hinds’ is out on 6 Sep and they will be touring the UK in February next year.

Johnny Foreigner have announced that they will release their sixth album ‘How To Be Hopeful’ on 13 Sep. It is preceded today by a new EP ‘The Sky And Sea Were Part Of Me, Or I Was Part Of Them’, which features five songs, including two from the album.

Knife Bride have released new single ‘Melancholia’.

Ministry Of Sound label sued of Ride It remix

Independent label 2Point9 Records is suing Sony Music’s Ministry Of Sound Recordings through the UK courts over the 2019 DJ Regard remix of 2008 Jay Sean track ‘Ride It’.

The indie released and owns the copyright in the original track. The Sony label, it claims, infringed that copyright by releasing the remix, which “substantially sampled” the original, without getting a licence.

The dispute goes all the way back to 2019 when the Regard remix first went massive on TikTok. “We have been fighting our corner on this matter for five years now and won’t stop until we get justice”, says 2Point9 Records co-founder Billy Grant.

He accuses the major label division of “arrogance and dismissiveness” when dealing with his company, even though the Ministry Of Sound record label began as an indie itself.

“Why they think that this kind of behaviour against a small label is acceptable is bewildering”, Grant adds. "However, we are determined to make them realise that it is not OK to ride roughshod over the commercial rights of those in the independent sector and that there are consequences for doing so. Commencing legal action is the next step in that process”.

Regard first remixed ‘Ride It’ in 2017, but it was in 2019 that it went viral on TikTok. In the wake of that success, Ministry Of Sound signed the producer and then officially released his remix in July that year. The track then became a global hit and has since gone on to achieve over one billion streams on Spotify and more than half a billion YouTube views.

2Point9 Records was made aware of Ministry’s interest in the remix prior to its official release via Jay Sean’s management, the assumption being that a licensing deal would be done to cover the substantial sample in the new version. But that didn't happen.

Ultimately, the major opted to re-record the elements of the original track that featured in the remix, rather than get a licence to make use of the original. However, it’s claimed, that re-record didn’t happen until after the remix’s official release in July 2019. Something the Sony label allegedly admitted.

The indie explains, “When challenged, Ministry Of Sound Recordings first claimed that it had re-recorded the sample, but it later admitted its release still featured the 2Point9 recording. Ministry of Sound Recordings did then re-record the sample but only months after the first release, by which time the track had become a commercial success”.

Therefore, 2Point9 says, Ministry Of Sound Recordings did initially infringe its copyright. With no deal done regarding that initial release five years on, 2Point9 says it now has “no recourse other than the high court”.

Easy Life return as Hard Life following easyGroup legal battle

The band formerly known as Easy Life have returned with their first new music under new name Hard Life. The band were forced to drop their former moniker following a legal battle with easyJet owner easyGroup, which accused Easy Life of trademark infringement.

New single ‘Tears’, says frontman Murray Matravers, was written about that legal run-in and “highlights the absurdity of the situation as well as thanking the people who have had my back throughout this whole ordeal”.

It also directly references easyGroup owner Stelios Haji-Ioannou with the line, “It was easy in my 20s, now I gotta lawyer up, gimme airmiles or a fair trial Stelios”.

The company has already objected to the lyric, telling BBC News that it is “disparaging and defamatory” and breaches the terms of their legal settlement. A spokesperson added that easyGroup is “disappointed” that Hard Life have “chosen to needlessly refresh the dispute, which the band chose to settle several months ago”.

Whether the band have defamed easyGroup and its boss, or breached their settlement agreement, would be a matter for the courts, of course. Although this is not the first time the band have indicated that they were not happy with the deal that ended the legal battle.

In a statement announcing their decision to give in and agree to change their name last October, the band said, “Sadly, it seems that justice is only available to those who can afford it. We simply don’t have the funds to access a fair trial in the high court”.

The band were sued for trademark infringement a week before that announcement, and had previously indicated that they would fight the attempt to force them to change their name.

While easyGroup does own a pretty wide-ranging trademark for easyLife, it registered this some years after the band formed. It also seemed a bit of a stretch that the company could claim that there would be confusion in the market causing people to think that the band was officially affiliated to easyGroup.

That said, the band had parodied easyJet branding on record artwork and merch in the past. It was still arguably unlikely that consumers would think that Easy Life were the official band of easyJet, but this did add a layer of uncertainty when it came to the band’s chances in court.

Announcing the release of ‘Tears’, Matravers explained the meaning behind the song and the decision to take on the new name Hard Life.

“Since our pretty public run-in with the well-known airline, my life has been turned upside down a little bit”, he said. “Everything has been on hold. All of us have had to reassess what the band means to us and come to terms with the idea that everything has a beginning, a middle and indeed, an end. The naive optimism we had in Easy Life has been swapped for something more raw and, I suppose, authentic”.

“Sitting with my thoughts and going backwards and forwards with IP lawyers, I wrote ‘Tears’”, he goes on. “It highlights the absurdity of the situation as well as thanking the people who have had my back throughout this whole ordeal. Of course, this song makes me smile, and I suppose that is my way of processing. Anyway, we’re back. Thanks for your patience”.

It remains to be seen if easyGroup makes its claim of defamation formal. It might not want another round of bad PR from such a move. Although it’s not like it’s a brand people love as it is. Everyone loves to complain about flying on easyJet, and I just discovered that another division of easyGroup makes really terrible toilet cleaner.

Anyway, watch the video for ‘Tears’ here.

Martin Shkreli ordered to hand over copies of Wu-Tang album

Martin Shkreli has been ordered to hand over any copies still in his possession of the single-copy Wu-Tang Clan album he was forced to give up to pay off debts to the US government in 2021. This comes after its current owner, NFT company PleasrDAO, said Shkreli had told followers online that he has copies “hidden in safes all around the world”.

In a ruling yesterday, the judge overseeing the case, Pamela Chen, ordered Shkreli to provide an inventory of all the copies of the album he kept and whom he gave them to. All remaining copies and files would then be seized, said the judge.

Shkreli bought the single CD copy of the album, ‘Once Upon A Time In Shaolin’, at auction in 2015 for $2 million. There then followed a weird saga where Shkreli seemed to be attempting to present himself as a real life comic book villain.

It turned out he was just a boring old normal kind of villain though, and he was ultimately convicted of defrauding investors in two of his hedge funds. This saw him sentenced to seven years in prison and told to hand over $7.4 million.

Unfortunately, Shkreli only had $5 million in his bank account, so the US government seized various assets to make up the shortfall. That included the Wu-Tang CD, which was then sold to PleasrDAO for $4 million.

Released from jail in 2022, Shkreli is active online and holds regular livestreams. It was during one of these videos that he reportedly claimed to still own copies of ‘Once Upon A Time In Shaolin’. He also seemingly played portions of it.

In a legal filling, PleasrDAO said, “The album was supposed to constitute the sole existing copy of the record, music, data and files, and packaging”.

Although bullish about the lawsuit on social media on Monday after it was filed, Shkreli never officially responded to it or a court summons, PleasrDAO’s attorney Steven Cooper told Law360. Cooper also said that Shkreli had learned about the order to hand over copies of the Wu-Tang album while appearing in a livestream last night.