The 5 Biggest Music Business News Stories Of 2017. (Yes, 2017.)

No Comments 27 December 2016

The 5 Biggest Music Business News Stories Of 2017. (Yes, 2017.)

We realize that the dying embers of December are usually used for retrospectives, wrap-ups and remembrances.

But MBW fancies itself as a bit of a bleeding edge, swerve-the-crowd type of publication.

So if it’s okay with you ...  we’re going new year, this year.

Looking into our crystal ball, we’ve spotted the five biggest music business news stories waiting to happen over the next 12 months.

All of them have the potential to significantly transform the industry. (You can expect to see their outcomes reported first right here, of course.)

In summary: If you thought 2016 was a crucial year for the music biz, just wait to see what its older brother has in store ...

1) PANDORA’S FATE IS SEALED

This year, Pandora has lost a CEO, CFO and COO. Oh, and $253 million.

MBW broke the news earlier this week that COO Sara Clemens, who was only elevated into the position in March, had quit.

Her walk-out comes just a month after we reported that Mike Herring was dropping his CFO role. (Herring remains in the position while a long-term replacement is sought, and will stay on as company President.)

Pandora founder Tim Westergren (pictured) has only been in post as CEO for nine months - having replaced Brian McAndrews - and he’s already had a truckload to deal with.

First came the bold move to launch a fully-licensed, on-demand streaming service - which has now been delayed into Q1 next year.

A lot of money’s been spent on it, including the $75m Pandora paid to buy Rdio’s platform out of bankruptcy.

Yet the early reaction to this $9.99-a-month product has been underwhelming. As Quartz recently put it: “Pandora Premium is the latest music service you won’t buy.”

Pandora also spent a scarcely believable $450m on independent ticketing company Ticketfly last year - a division which, according to its latest financials, turned over just $22m last quarter.

Meanwhile, Pandora’s active listener base continues to atrophy: 77.9m ‘tuned in’ in the three months to end of September, down both year-on-year and quarter-on-quarter.

According to reports, Pandora’s board is now very seriously considering a sale, with SiriusXM the most likely suitor.

You certainly sense that something’s got to give.

2) SPOTIFY FINALLY FLOATS - AND MAKES DANIEL EK RICH. OR DOES IT?

Everything is connected. What if Pandora does end up selling in the first half of 2017?

It will go down - financially speaking - as a failed experiment; the ‘pure music’ business which floated, lost its way… and needed a life-raft.

It’s stories like this which will terrify Spotify in the home stretch of its own IPO plans.


Read More/Original Source: http://www.musicbusinessworldwide.com/7-biggest-news-stories-2017-today/


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