Ben Sisario, writing at The New York Times:

Over the last year, the 12-year-old company has quietly struck direct licensing deals with a small number of independent artists. The deals give those artists a way onto the streaming platform and a closer relationship to the company — an advantage when pitching music for its influential playlists — while bypassing the major labels altogether.

Although the deals are modest — with advance payments of tens or hundreds of thousands of dollars, according to several people involved — the big record companies see the Spotify initiative as a potential threat: a small step that, down the line, could reshape the music business as it has existed since the days of the Victrola.

This feels inevitable. At some point these digital streaming services will have better algorithms for figuring out what music is not only going to be universally popular but also own the distribution method to help make it so. At that point, what’s the point of a record label?

Spotify:

In partnership with Berklee College of Music and Electric Lady Studios, Spotify’s EQL Studio Residency will help open the door for emerging female producers and engineers while shining a light on the great work already being done by women in the music industry.

Starting in October, the program will offer three residencies in three different cities: New York, Nashville, and London. During these paid six-month residencies, one participant in each city will work hands-on in our studios and gain access to invaluable networking and mentoring opportunities to further her career.

Hannah Karp, writing for Billboard:

Under the terms of some of the deals, management firms can receive several hundred thousand dollars as an advance fee for agreeing to license a certain number of tracks by their independent acts directly to Spotify. Then, in at least some cases, the managers and acts stand to earn 50 percent of the revenue per stream on those songs on Spotify. That’s slightly less than the 54 percent of revenue the major record labels in the U.S. get per stream, on average, according to Billboard’s calculations, but major-label artists and their managers typically receive only 20 percent to 50 percent of the label’s share, depending on an act’s individual royalty rates, and don’t usually get to own their master recordings.

Spotify has a “Hate Content & Hateful Conduct Policy” that states:

We don’t censor content because of an artist’s or creator’s behavior, but we want our editorial decisions – what we choose to program – to reflect our values. When an artist or creator does something that is especially harmful or hateful (for example, violence against children and sexual violence), it may affect the ways we work with or support that artist or creator.

As of today they’ve used this policy to remove R. Kelly and XXXTentacion from their playlists. A Spotify spokesperson told Billboard:

We are removing R. Kelly’s music from all Spotify owned and operated playlists and algorithmic recommendations such as Discover Weekly. His music will still be available on the service, but Spotify will not actively promote it.

Good.

Spotify went public today. Market Watch has some of the numbers:

The stock’s first trade was at $165.90 at 12:43 p.m. ET for 5.7 million shares, according to FactSet, or 27% above the reference price of $132. The stock then rose to an intraday high of $169, before falling to a low of $148.48. The stock was recently 9.8% below its opening price in afternoon trade.

Michael Tauberg, writing on Medium:

With the death of record stores, radio, and to a lesser extent, iTunes, the unit of music delivered to customers has shrunk. From the album, to the song, to now, the stream, music has been disentangled from it’s larger context. As such, we would expect that the names of albums and songs are uncorrelated to their musical success. One way to measure this is the number of unique words in a song title. Although there does appear to be an art to naming a hit song (or say book), the longer tail of music means more random song titles chosen by artists instead of record executives.

An interesting dive into music data.