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 MUSIC MARKETING TIPS, MUST-KNOW SKILLS & ESSENTIAL NEWS
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Hi <<First Name>>, and welcome to The Knowledge – Music Ally's weekly, in-depth-and-at-a-glance analysis of the discombobulated modern music industry. If this newsletter was an aeroplane, it would absolutely shoot fireworks and lasers whilst loop-the-looping to Darude’s Sandstorm.
 
Below are highlights of the news, analysis and learning that make up our industry-standard subscriber services. As ever, please forward this email and signup link to anyone who'd like this newsletter to waggle its eyebrows suggestively in their inbox each Friday. (And hit reply if, like us, you’d live in fear of The Croissant In The Tree.)

Knowledge is power!

In this week's The Knowledge:


📬 BULLETIN NEWS: EC says Apple 'distorted competition' in music streaming market
🗺 COUNTRY PROFILE: Japan – a big wobble, but real optimism for the future
👩‍🎓 LEARNING HUB: Streaming Ecosystem – Platforms, Features & Trends
 📺 MUSIC ALLY TV GREATEST HITS: Techno legend Richie Hawtin lets AI take over
🤔 A LITTLE SOMETHING EXTRA... Our favourite unusual stuff found online this week
 
Note:  Ⓜ️ = link to Music Ally subscriber content
📬 BULLETIN NEWS: EC says Apple 'distorted competition' in music streaming market

The European Commission has sent a ‘statement of objections’ to Apple, after Spotify triggered an investigation of the company. Its preliminary view is that Apple “distorted competition in the music streaming market as it abused its dominant position for the distribution of music streaming apps through its App Store”.

You can read our full analysis of the EC's statement here – but here's the quick breakdown:
  • Essentially, the EC says that Apple charges "high commission fees on each transaction in the App store for rival apps" to Apple Music (like Spotify) and places restrictions on “informing iPhone and iPad users of alternative, cheaper purchasing possibilities” within their apps.
  • This leads to "higher prices for consumers for their in-app music subscriptions on iOS devices."
  • The Commission’s executive vice-president Margrethe Vestager said, in a statement, “By setting strict rules on the App store that disadvantage competing music streaming services, Apple deprives users of cheaper music streaming choices and distorts competition."
  • Apple issued a statement saying that, "Spotify does not pay Apple any commission on over 99% of their subscribers [...] they want all the benefits of the App Store but don’t think they should have to pay anything for that."
  • Spotify, meanwhile said that it was “a critical step toward holding Apple accountable for its anticompetitive behavior, ensuring meaningful choice for all consumers and a level playing field for app developers.” 
  • It’s important to note that this is a preliminary view, with the EC making it clear that sending a statement of objections “does not prejudge the outcome of an investigation”.
So what happens next? Apple gets to read the Commission’s investigation file, reply in writing and request an oral hearing to offer its defence. We'll keep you updated...

Music Ally archive: Apple and Spotify
🎧 TL; DR? Listen to Stuart Dredge and Joe Sparrow give brief, deep analysis of important music business stuff in the Music Ally Focus Podcast

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🗺 COUNTRY PROFILE: Japan – a big wobble, but real optimism for the future

Our report on Japan shows that the country has a strong market, albeit one in transition: there's been a value drop, but signs are still very positive. Here's a few fast takeaways from the full report:
  • Japan has a population of 125.5m, with strong internet and smartphone penetration: 161.1m internet users and 100m Smartphone users.
  • The recorded music market lost 19% of value in the first half of 2020, despite an increase in digital revenue of 11% – but it was a drop that was expected, given the impact of COVID-19. 
  • Physical sales are still strong in Japan, but Music Ally Japan contributing editor Jay Kogami says that there are a number of reasons why CD revenue has declined.
  • “A-list artists have postponed their albums; the physical record shops have
    all been shut down during the state of emergency; the meet-and-greet sweepstakes and autograph signing events for CD purchases have all been cancelled, which has resulted in people stop buying CDs,”
    says Kogami.
  • There's now a focus on finding new streaming subscribers to kick-start growth again.
– Read the full report on Japan Ⓜ️ and dig into our full Countries archive here.
🌎 Get last minute early-bird tickets for Sandbox Summit Global 🌍 

Sandbox Summit Global takes place online on 25-27 May, featuring presentations, interviews and panels from high-level international speakers. Ticket prices go up on Sunday, so it's your last chance to bag an early-bird ticket – purchase yours right here! For corporate group discounts please contact Anthony

PLUS: there's a *handful* of free passes for managers & indie labels left – use these codes at sandboxsummitglobal.com(Be quick, there's only a few left!)
  • Limited passes for artist managers: SSGMANAGER
  • Limited passes for indie labels: SSGINDIE
Learn with us: For over a decade, Music Ally has upskilled people in all levels of the music industry: from major label teams, to Indies, managers, and DIY artists. Our Learning Hub is designed so that everyone – from students to CEOs – can get the edge they need. Always up-to-date with the newest digital marketing knowledge and future-facing strategies: Music Ally trains the best to be the best.
👩‍🎓 LEARNING HUB: Streaming Ecosystem – Platforms, Features & Trends

Understanding the intricacies of the biggest streaming platforms and how they're evolving is critical to success in the modern music industry. By the end of this course you'll be able to evaluate the key differences between platforms so that you can make informed decisions, and better exploit the commercial opportunities available.

But first, we must comprehend the fundamental shift in how we listen to music:

  • The "playlistification of music" is here - the majority of listening happens within playlists: fans listen to several different artists rather than listening to one album by the same artist.
  • Thus there's huge importance on artists being playlisted to generate streams for a release.
  • When users listen to music on playlists, there are no visual clues or storytelling to connect them with the artist on a deeper level.
  • This makes it incredibly hard for artists to stand out and build artist-fan relationships on the platform: an artist might have millions of streams due to passive playlist listening, but that doesn’t always translate into passionate fanbases.
  • Therefore, it's essential to create these relationships on other channels – and then drive the fans back to the streaming platforms.
Knowledge subscribers get a stupendous 50% DISCOUNT on our 'Streaming Ecosystem – Platforms, Features & Trends' module. It walks you through the playlist ecosystem, as well as other features – such as radio, video, podcasts, and more. Plus, we'll look at the most important trends shaping streaming today - from genreless playlists, looking at cutting-edge artist marketing activations, and fan tipping.
 📺 MUSIC ALLY TV GREATEST HITS: Techno legend Richie Hawtin lets AI take over
 
This week proffered another Instant Classic™ TV Show, even if we say so ourselves: joining us was pioneering musician, DJ and technologist Richie Hawtin, along with Endel CEO Oleg Stavitsky. We discussed Endel's partnership with Hawtin which created ‘Deeper Focus’, an AI-generated soundscape that twists and turns according to input like the heart rate of the user.
 
🆓 FREE STUFF AHOY! Knowledge readers can get a free month of Endel 🆓

Music Ally has always argued that AI tech, including AI designed to create music, is going to be an exciting tool or collaborator for human musicians, rather than an existential threat. In this show, Oleg and Richie dig into what AI means for musicians and the future of music making, and what challenges their step into the unknown brings... 

Watch the full interview below, listen to it as a podcast, and  this article has the highlights from the conversation.

– Check out our past shows too: they're jam-packed with expert advice!

Music Ally TV – Music & AI with Richie Hawtin and Endel CEO Oleg Stavitsky (Ep. 20)

🤔 A LITTLE SOMETHING EXTRA...

And finally… our daily Bulletin newsletter is loved by subscribers for its instant industry analysis - but secretly, the part they like most is the ‘A Little Something Extra’ section at the bottom of the email. Here's a few of the best recent links and a couple of Knowledge extras
🆓 GET COMPLIMENTARY ACCESS TO MUSIC ALLY: sponsored subscriptions – giving full access to our news, reporting and analysis – are available to people who work for independent labels, artist management, or music publishing companies. To find out if you qualify, please contact rocio@musically.com.
Music Ally is a knowledge company for the global music business. See our recently launched Learning Hub which contains over 30 videos of up to date and fully certified content. We also offer in-house learning and development as well as marketing strategy and implementation for labels, managers, artists and publishers. Talk to Anthony to find out more or set up a call.
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