Spotify Announces Job Cuts Affecting 17% of Global Workforce
In its third round of downsizing this year, Spotify has revealed that it will be cutting approximately 1500 jobs, impacting 17% of its global workforce. Spotify CEO Daniel Ek explained that these cuts were necessary due to a significant slowdown in economic growth and an increase in capital costs. Investors have been urging Spotify to demonstrate a solid strategy for profitability, and the company’s share price did see an increase following the announcement, even though it still remains below its 2021 peak. The company estimates that these cutbacks will cost up to €145 million but expects to generate meaningful operating efficiencies in the future.
Spotify Confirms Cost of Downsizing, Cancels Two In-House Podcasts
Spotify has confirmed that the significant downsizing of its workforce will cost the company up to €145 million.
Music Venue Trust Calls for Support for Grassroots Venues as Bath Moles Closes after 45 Years
Following the closure of Moles in Bath, which had been in operation for 45 years, the Music Venue Trust has called on UK lawmakers to consider implementing a compulsory ticket levy on large-scale shows to support grassroots venues. The management of Moles cited the current cost of living crisis as the reason for the closure, claiming that it had “crippled the grassroots music sector”.
Norwegian Supreme Court’s Copyright Ruling Raises Concerns
A copyright ruling by the Norwegian Supreme Court has been met with criticism, specifically relating to a dispute over three tracks created by Noam Ofir and Fredrik Øverlie. The ruling concluded that the rights to the recordings belong to Øverlie’s label, Mutual Intentions, but Ofir argued that he created the recordings at his own risk, without contractual obligations to the label. Ofir expressed concern over the implications of the ruling for artists working with Norwegian labels and musicians.
IMPALA Calls for Delay in Spotify Royalty Payout Revamp
IMPALA, a pan-European indie label trade group, has called for a delay in Spotify’s plans to change its royalty payout system. Spotify’s proposed changes involve altering the way revenue is allocated to individual tracks each month, including the introduction of a 1000 play threshold. Many in the indie and music-maker communities have criticized the lack of consultation regarding Spotify’s plan, including the introduction of the threshold.
US Record Industry Opposes AI Training with Existing Music
The US record industry is pushing back against claims by tech companies that using existing music to train AI models constitutes fair use under American law. Three trade groups – the Recording Industry Association Of America, the American Association Of Independent Music, and the Recording Academy – submitted a ‘reply comment’ as part of an ongoing inquiry into the impact of AI by the US Copyright Office, voicing their opposition to the suggestion.
These changes and developments across the music industry are expected to have significant implications for various stakeholders, including artists, venues, music labels, and tech companies.