
<h2 class="wp-block-heading" id="h-topline">Topline</h2>



<p>More than 45,000 Spotify users&nbsp;<a href="https://downdetector.com/status/spotify/" rel="noreferrer noopener" target="_blank">reported</a>&nbsp;the popular music streaming platform was down Wednesday morning, according to reports filed on DownDetector.com, prompting hundreds of social media users to cope with memes and panicked comments.</p>



<h2 class="wp-block-heading">Key Facts</h2>



<p>Spotify users began&nbsp;<a href="https://downdetector.com/status/spotify/" rel="noreferrer noopener" target="_blank">reporting issues</a>&nbsp;on DownDetector.com around 9 a.m. EST, with reports peaking at just before 9:30 a.m., as more than 45,000 users reported issues with the app.</p>



<p><a href="https://x.com/SpotifyStatus/status/1912487507616313838" rel="noreferrer noopener" target="_blank">Spotify Status</a>, the company’s X account for server issues, acknowledged the possible outage in a post just before 9 a.m. EST: “We’re aware of some issues right now and are checking them out!”</p>



<p>Forbes has reached out to Spotify for comment.</p>



<h2 class="wp-block-heading">How Are Spotify Users Reacting To The Outage?</h2>



<p>More than 1,300 users flooded the comments section of Spotify’s DownDetector.com page in a panic, many of whom joked and commiserated about the temporary loss of the streaming platform. “It’s only been 10 minutes without Spotify, but it feels like an eternity,” one of the most-liked comments says, with the user adding they are “desperately trying to find something to occupy my mind, but nothing feels right.” “I don’t want to use YouTube for music,” another complained in an all-caps comment. Users also took to X to complain about the outage, where “Spotify’ is the No. 1 trend as of Wednesday morning. One user garnered thousands of likes on a post with a Spotify logo edited onto a&nbsp;<a href="https://x.com/musicstruggles1/status/1912486819553292340" rel="noreferrer noopener" target="_blank">headstone</a>, while another&nbsp;<a href="https://x.com/graciem19999/status/1912494480831177036" rel="noreferrer noopener" target="_blank">joked</a>&nbsp;“the thoughts are getting in” without music.</p>



<h2 class="wp-block-heading">Is Spotify Down—and When Will It Be Back?</h2>



<p>Spotify has not yet said when it expects server issues to be resolved. The company’s customer service X account,&nbsp;<a href="https://x.com/SpotifyCares/status/1912502365019656209" rel="noreferrer noopener" target="_blank">Spotify Cares</a>, has responded to multiple users reporting issues Wednesday morning, stating its “developers are looking into this as we speak.”</p>


Music And Sound Streaming Platforms Stock Photos

Spotify Outage: Music Platform Appears To Be Down—And People Are Freaking Out


<p>South Africa’s music industry is entering a new era of change and transformation.</p>



<p>The country’s local artists doubled their earnings since 2022 by generating R400 million ($21.24 million) in royalties last year. According to music streaming service Spotify’s 2025 Loud &amp; Clear transparency report, the “financial milestone” comes alongside explosive audience growth, with South African artists being discovered by first-time listeners over 1.1 billion times–a 55% increase since 2023.</p>



<p>“We&#8217;re not just supporting South African artists–we&#8217;re revolutionizing how they build sustainable careers,” Jocelyne Muhutu-Remy, Spotify&#8217;s Sub-Saharan Africa Managing Director said in a statement. “Our ecosystem empowers artists to earn equitably from their talent while driving a powerful wave of cultural innovation that resonates globally.”</p>



<p>The report further highlighted that royalties for music performed in indigenous languages have skyrocketed, especially for South African local languages like isiZulu, Sotho, and Afrikaans, which has more than doubled since 2021.</p>



<p>Over 3,000 South African artists are featured on Spotify&#8217;s editorial playlists. The streaming service says it believes a substantial portion of royalties generated by South African artists came from international listeners.</p>



<p>“Global consumption of South African music averages over 600,000 hours daily,” the report reads. “Users have created approximately 220 million playlists featuring South African artists globally.”&nbsp;</p>



<p>Muhutu-Remy also highlighted how South African Grammy award-winning artist, Tyla Laura Seethal, recently surpassed one billion streams on Spotify with her global hit <em>Water</em>. This milestone made her the first African solo artist to achieve this.</p>



<p>“This historic moment cements Tyla’s place as one of the most influential new voices in music, solidifying the growing global impact of African artists,” Muhutu-Remy added.</p>


2024 Billboard Music Awards – Show

South Africa’s Artists Doubled Their Earnings, Report Reveals


<p>It has been a stellar year for music on the continent. Globally, more artists from Africa have taken center-stage introducing the nuances of African sound that’s becoming a firm favorite.</p>



<p>Digital music service provider Spotify has just released its much-anticipated ‘Wrapped’ list that collates the biggest songs, genres, and artists from around the world. According to its data, sub-Saharan Africa (SSA) is experiencing what the streaming service is calling a musical renaissance, with a 114% growth in music consumption, eclipsing other regions.</p>



<p>Leading this charge in 2024 is Nigeria-origin genre Afrobeats, which, according to Spotify, has captivated listeners worldwide.&nbsp;</p>



<p>Wrapped 2024 reveals that Nigerian artists such as Ahmed Ololade, also known as Asake, and Damini Ebunoluwa Ogulu, popularly known as Burna Boy, dominated the most-listed charts.</p>



<p>“This is a major win for Afrobeats, showcasing its growing global influence,” Phiona Okumu, Spotify&#8217;s Head of Music for Sub-Saharan Africa says. “And with Ogulu, a global icon, still holding strong in the top ranks, it&#8217;s clear that Afrobeats isn&#8217;t just a trend; it&#8217;s a cultural phenomenon.”</p>



<p>The streaming platform has also noted the rise of female artists in Africa such as Tyla Laura Seethal and Oyinkansola Sarah Aderibigbe, known as Ayra Starr. Starr takes the crown as the most-streamed female artist, while Tyla leads the EQUAL artist program in SSA. &nbsp;</p>



<p>The South African Amapiano scene also continues globally to take over charts with <em>Tshwala Bam</em> (a song by South African producers TitoM, whose real name is Thato Mathobela, and Bongani Sibanyoni, popularly known as Yuppe) and <em>Imithandazo</em> (song by Kabelo Motha, known to the world as Kabza De Small and Njabulo “Mthunzi” Ndimande) securing spots on the most-streamed list.</p>



<p>“The significant growth in local music consumption reflects the deep connection audiences have with homegrown sounds. Afrobeats continues to captivate the world, while Amapiano’s explosive growth highlights the continent’s ability to innovate and shape global music trends.</p>



<p>“We’re also seeing a rising interest in rap music, underscoring the diversity of African listeners and their appreciation for lyrical and cultural storytelling. This isn’t just about music — it’s about a celebration of identity, creativity, and the cultural heartbeat that makes Africa a global force in music today… Their success is a testament to the power of music to empower and inspire,” Okumu adds.</p>



<p><strong>The Most-Streamed African Artists In 2024</strong></p>



<p><strong>1.Asake</strong><br>Nigerian singer and rapper, Ololade, first came onto the scene in 2017. When he released his hit single, <em>Mr Money</em>, in 2022, the world began to take note. In 2024, his song <em>Lonely At The Top</em>, was one of the most-streamed.</p>


<div class="wp-block-image">
<figure class="aligncenter size-full is-resized"><img loading="lazy" decoding="async" width="682" height="1024" src="https://cms.forbesafrica.com/wp-content/uploads/2024/12/GettyImages-2173625350.jpg" alt="" class="wp-image-63865" style="width:368px;height:auto" srcset="https://cms.forbesafrica.com/wp-content/uploads/2024/12/GettyImages-2173625350.jpg 682w, https://cms.forbesafrica.com/wp-content/uploads/2024/12/GettyImages-2173625350-200x300.jpg 200w" sizes="auto, (max-width: 682px) 100vw, 682px" /><figcaption class="wp-element-caption"><strong><em>(Photo by Joseph Okpako/WireImage)</em></strong></figcaption></figure></div>


<p><strong>2. Burna Boy</strong><br>Known to the world for his vocal texture, as well as singing in a blend of English and Yoruba, last year, Ogulu became the first international Afrobeats artist to obtain the number one spot on the official weekly UK album chart. His track <em>Higher</em> was on the most-streamed list this year.</p>


<div class="wp-block-image">
<figure class="aligncenter size-full is-resized"><img loading="lazy" decoding="async" width="683" height="1024" src="https://cms.forbesafrica.com/wp-content/uploads/2024/12/GettyImages-2181280997.jpg" alt="" class="wp-image-63864" style="width:383px;height:auto" srcset="https://cms.forbesafrica.com/wp-content/uploads/2024/12/GettyImages-2181280997.jpg 683w, https://cms.forbesafrica.com/wp-content/uploads/2024/12/GettyImages-2181280997-200x300.jpg 200w" sizes="auto, (max-width: 683px) 100vw, 683px" /><figcaption class="wp-element-caption"><strong><em>(Photo by Allen Berezovsky/Getty Images)</em></strong></figcaption></figure></div>


<p><strong>3. Seyi Vibez</strong><br>At only 24 years old, Balogun Afolabi Oluwaloseyi’s track <em>Different Pattern</em> was ranked number six this year on the most streamed list. Hailing from Nigeria, in 2023, Oluwaloseyi had his breakthrough with his single <em>Chance (Na Ham</em>), which debuted at number 19 on the UK Afrobeats singles chart and peaked at number 7 on the TurnTable Top 100 chart.</p>


<div class="wp-block-image">
<figure class="aligncenter size-full is-resized"><img loading="lazy" decoding="async" width="683" height="1024" src="https://cms.forbesafrica.com/wp-content/uploads/2024/12/GettyImages-1658504921.jpg" alt="" class="wp-image-63863" style="width:449px;height:auto" srcset="https://cms.forbesafrica.com/wp-content/uploads/2024/12/GettyImages-1658504921.jpg 683w, https://cms.forbesafrica.com/wp-content/uploads/2024/12/GettyImages-1658504921-200x300.jpg 200w" sizes="auto, (max-width: 683px) 100vw, 683px" /><figcaption class="wp-element-caption"><strong> (Photo by Paras Griffin/Getty Images)</strong></figcaption></figure></div>


<p><strong>4. Rema</strong><br>Since his rise to stardom in 2019, Divine Ikubor has continued to reach new heights with his music. In 2023, his hit single <em>Calm Down</em>, also featuring global pop artist Selena Gomez, reached over one billion streams on Spotify.</p>


<div class="wp-block-image">
<figure class="aligncenter size-full is-resized"><img loading="lazy" decoding="async" width="683" height="1024" src="https://cms.forbesafrica.com/wp-content/uploads/2024/12/GettyImages-2187245344.jpg" alt="" class="wp-image-63862" style="width:293px;height:auto" srcset="https://cms.forbesafrica.com/wp-content/uploads/2024/12/GettyImages-2187245344.jpg 683w, https://cms.forbesafrica.com/wp-content/uploads/2024/12/GettyImages-2187245344-200x300.jpg 200w" sizes="auto, (max-width: 683px) 100vw, 683px" /><figcaption class="wp-element-caption"><strong><em>(Photo by Jed Cullen/Dave Benett/Getty Images for British Vogue)</em></strong></figcaption></figure></div>


<p><strong>5. Davido</strong><br>In 2023, <em>Forbes</em> called David Adedeji Adeleke &#8220;The King of Afrobeats&#8221;, and he has had a big role in the growth of African music globally. This year, Adeleke released a song with five-time Grammy award winning Benin artist, Angelique Kidjo, which has had over two million streams on Spotify.</p>


<div class="wp-block-image">
<figure class="aligncenter size-full is-resized"><img loading="lazy" decoding="async" width="1024" height="683" src="https://cms.forbesafrica.com/wp-content/uploads/2024/12/GettyImages-2186244849.jpg" alt="" class="wp-image-63861" style="width:534px;height:auto" srcset="https://cms.forbesafrica.com/wp-content/uploads/2024/12/GettyImages-2186244849.jpg 1024w, https://cms.forbesafrica.com/wp-content/uploads/2024/12/GettyImages-2186244849-300x200.jpg 300w, https://cms.forbesafrica.com/wp-content/uploads/2024/12/GettyImages-2186244849-768x512.jpg 768w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /><figcaption class="wp-element-caption"><strong><em> (Photo by Paras Griffin/Getty Images)</em></strong></figcaption></figure></div>


<p><strong>6. Wizkid</strong><br>Ayodeji Ibrahim Balogun has been regarded as one of the most prominent figures in the “modern-day Afrobeats music scene” as well as considered him as “one of the biggest and most influential African artists of all time”. In 2024, Balogun released his much-anticipated single <em>Piece of My Heart</em>, featuring American singer-songwriter Brent Faiyaz.</p>


<div class="wp-block-image">
<figure class="aligncenter size-full is-resized"><img loading="lazy" decoding="async" width="683" height="1024" src="https://cms.forbesafrica.com/wp-content/uploads/2024/12/GettyImages-2187920400.jpg" alt="" class="wp-image-63860" style="width:427px;height:auto" srcset="https://cms.forbesafrica.com/wp-content/uploads/2024/12/GettyImages-2187920400.jpg 683w, https://cms.forbesafrica.com/wp-content/uploads/2024/12/GettyImages-2187920400-200x300.jpg 200w" sizes="auto, (max-width: 683px) 100vw, 683px" /><figcaption class="wp-element-caption"><strong><em>(Photo by John Phillips/Getty Images for BFC)</em></strong></figcaption></figure></div>


<p><strong>7.&nbsp; Bnxn</strong><br>Afro-fusion has become relatively popular but it’s not a new genre on the continent. However, artists like Daniel Etiese Benson have been at the forefront of this genre since his breakthrough in 2018.</p>



<p><strong>8. Omah Lay</strong><br>Stanley Omah Didia has become a household name for songs like <em>Soso</em> and <em>Holy Ghost</em>. His album <em>Boy Alone</em> was also ranked number 8 on the most-streamed list this year.</p>


<div class="wp-block-image">
<figure class="aligncenter size-full is-resized"><img loading="lazy" decoding="async" width="682" height="1024" src="https://cms.forbesafrica.com/wp-content/uploads/2024/12/GettyImages-2160689344.jpg" alt="" class="wp-image-63859" style="width:388px;height:auto" srcset="https://cms.forbesafrica.com/wp-content/uploads/2024/12/GettyImages-2160689344.jpg 682w, https://cms.forbesafrica.com/wp-content/uploads/2024/12/GettyImages-2160689344-200x300.jpg 200w" sizes="auto, (max-width: 682px) 100vw, 682px" /><figcaption class="wp-element-caption">(Photo by Joseph Okpako/WireImage)</figcaption></figure></div>


<p><strong>9. Kizz Daniel</strong><br>Oluwatobiloba Daniel rose to fame in 2014 with his single <em>Woju</em>. In 2024, Daniel has had over four million monthly listeners.</p>


<div class="wp-block-image">
<figure class="aligncenter size-full is-resized"><img loading="lazy" decoding="async" width="1024" height="683" src="https://cms.forbesafrica.com/wp-content/uploads/2024/12/GettyImages-1443949840.jpg" alt="" class="wp-image-63858" style="width:504px;height:auto" srcset="https://cms.forbesafrica.com/wp-content/uploads/2024/12/GettyImages-1443949840.jpg 1024w, https://cms.forbesafrica.com/wp-content/uploads/2024/12/GettyImages-1443949840-300x200.jpg 300w, https://cms.forbesafrica.com/wp-content/uploads/2024/12/GettyImages-1443949840-768x512.jpg 768w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /><figcaption class="wp-element-caption">(Photo by Hector Vivas &#8211; FIFA/FIFA via Getty Images)</figcaption></figure></div>


<p><strong>10. ODUMODUBLVCK</strong><br>As an artist who is known for his genre blend music, (known as ODUMODUBLVCK) Tochukwu Gbubemi Ojogwu’s album <em>EZIOKWU</em> was in the top five for the most-streamed album in 2024.</p>



<p></p>


aaaaaaaaaa

‘The Cultural Heartbeat That Makes Africa A Global Force In Music’: 2024’s Biggest African Artists As Afrobeats Dominates Charts Again


<h2 class="wp-block-heading" id="h-topline">Topline</h2>



<p>Spotify&nbsp;<a href="https://www.instagram.com/reel/DC4Jv6SJjhg/?utm_source=ig_web_copy_link" rel="noreferrer noopener" target="_blank">teased</a>&nbsp;the release of its highly anticipated 2024 Spotify Wrapped on Wednesday and&nbsp;<a href="https://newsroom.spotify.com/2024-11-27/are-you-wrapped-ready-first-make-sure-your-spotify-app-is-up-to-date/" rel="noreferrer noopener" target="_blank">reminded</a>&nbsp;users to make sure their apps are up-to-date so they can access the playlists when they’re released—though the company stopped short of sharing the release date.</p>



<h2 class="wp-block-heading" id="h-key-facts">Key Facts</h2>



<p>The platform suggested Wednesday that Wrapped is coming soon by&nbsp;<a href="https://mashable.com/article/spotify-wrapped-coming-soon" rel="noreferrer noopener" target="_blank">showing</a>&nbsp;users a reminder to listen to their past years’ Spotify Wrapped and saying “the best time of year is right around the corner.”</p>



<p>Spotify also put out a&nbsp;<a href="https://newsroom.spotify.com/2024-11-27/are-you-wrapped-ready-first-make-sure-your-spotify-app-is-up-to-date/" rel="noreferrer noopener" target="_blank">press release</a>&nbsp;Wednesday encouraging users to ensure their apps had the latest update so they don’t miss any features included in the Wrapped package.</p>



<p>Spotify teased its upcoming Wrapped package earlier in the year with a Halloween-themed&nbsp;<a href="https://x.com/SpotifyNews/status/1852006409090535754" rel="noreferrer noopener" target="_blank">post on X</a>, formerly known as Twitter, that confirmed data collection would continue past Oct. 31 to an unspecified date.</p>



<p>The Spotify Wrapped packages, customized graphics that tell a Spotify user their top five most-streamed songs and artists in a calendar year—and their top 100 songs—used to stop data collection on Oct. 31,&nbsp;<a href="https://www.usatoday.com/story/money/2022/11/01/spotify-wrapped-2022-music-data/10659843002/" rel="noreferrer noopener" target="_blank">USA Today</a>&nbsp;reported in 2022.</p>



<p><a href="https://www.usatoday.com/story/tech/2024/10/24/spotify-wrapped-2024/75828894007/" rel="noreferrer noopener" target="_blank">Spotify told users</a>&nbsp;in an in-app pop-up message last week that “2024 is almost a wrap,” urging users to update the app so they can access their Wrapped packages when they arrive.</p>



<h2 class="wp-block-heading" id="h-when-will-spotify-wrapped-2024-release">When Will Spotify Wrapped 2024 Release?</h2>



<p>No release date has been announced, but Spotify Wrapped has typically dropped at the end of November or early December. Spotify released its Wrapped packages on Nov. 29 last year, one day earlier than the previous year, when the packages were released on Nov. 30. Users are typically given access to Spotify Wrapped through an in-app pop-up, and the package is formatted as a slideshow with Instagram Story-ready graphics.</p>



<h2 class="wp-block-heading" id="h-will-there-be-a-new-spotify-wrapped-feature">Will There Be A New Spotify Wrapped Feature?</h2>



<p>It’s not clear. In some past years, Spotify has included new elements to its Wrapped package. Last year it matched users to a “Sound Town” based on their “most-streamed artists of the year, and the way in which those artists are streamed in other cities.” And in 2019, Spotify gave users a look back at their trends over the&nbsp;<a href="https://newsroom.spotify.com/2019-12-05/spotify-wrapped-2019-reveals-your-streaming-trends-from-2010-to-now/" rel="noreferrer noopener" target="_blank">decade</a>. In an Instagram&nbsp;<a href="https://www.instagram.com/reel/DC4Jv6SJjhg/?utm_source=ig_web_copy_link" rel="noreferrer noopener" target="_blank">post</a>&nbsp;Wednesday, Spotify shared a video of its logo changing to represent various albums released this year and said: “This year contained multitudes. So will your Wrapped. Coming Soon.”</p>



<h2 class="wp-block-heading" id="h-tangent">Tangent</h2>



<p>Social media users have frequently joked they wait until Spotify stops tracking their data so they can safely listen to music they’d be embarrassed by if it ended up in their Spotify Wrapped. More than 200,000 users liked an&nbsp;<a href="https://x.com/INDIEWASHERE/status/1849090072307491082" rel="noreferrer noopener" target="_blank">X post</a>&nbsp;last week from a user who said her Spotify Wrapped is “going to be so embarrassing this year,” and last year, the&nbsp;<a href="https://www.washingtonpost.com/entertainment/2023/10/27/spotify-wrapped-tracking-end-october/" rel="noreferrer noopener" target="_blank">Washington Post</a>&nbsp;referred to November and December as “cheat months” where users can listen to holiday music and show tunes safely without fear of them popping up on Spotify Wrapped.</p>



<h2 class="wp-block-heading" id="h-key-background">Key Background</h2>



<p>Spotify began its&nbsp;<a href="https://www.forbes.com/sites/conormurray/2023/11/28/spotify-wrapped-2023-comes-soon-heres-how-it-became-a-viral-and-widely-copied-marketing-tactic/">Wrapped marketing campaign</a>&nbsp;in 2016, and began issuing Instagram Story-shareable graphics to users as part of their Wrapped packages in 2019. The Wrapped campaign has been a huge marketing hit for the streaming platform:&nbsp;<a href="https://time.com/6340656/spotify-wrapped-guide-2023/" rel="noreferrer noopener" target="_blank">Spotify said</a>&nbsp;more than 156 million users accessed their Wrapped package in 2022, up from 120 million the year prior. Social media analytics company&nbsp;<a href="https://sproutsocial.com/insights/spotify-wrapped/" rel="noreferrer noopener" target="_blank">SproutSocial</a>&nbsp;found 400 million posts had been made about Spotify Wrapped on X in the three days following its 2022 release, up 15% from the year before. Spotify typically unveils new features for the Wrapped campaign each year. In last year’s edition, each user was assigned a “<a href="https://www.forbes.com/sites/conormurray/2023/11/29/spotify-wrapped-sound-towns-social-media-has-theories-about-why-you-got-assigned-berkeley-or-burlington/">sound town</a>,” a city that matches their music taste, leading to viral jokes on social media that Burlington, Vermont, and Cambridge, Massachusetts, may be home to large communities of queer artists and LGBTQ listeners. In 2022,&nbsp;<a href="https://www.theverge.com/2022/11/30/23484880/spotify-wrapped-2022-music-personality-bad-bunny-harry-styles-joe-rogan" rel="noreferrer noopener" target="_blank">listeners</a>&nbsp;were assigned listening personality types based on the Meyers-Briggs personality test.</p>



<h2 class="wp-block-heading" id="h-further-reading">Further Reading</h2>



<p><a href="https://www.forbes.com/sites/conormurray/2023/11/28/spotify-wrapped-2023-comes-soon-heres-how-it-became-a-viral-and-widely-copied-marketing-tactic/">Spotify Wrapped 2023 Comes Soon: Here’s How It Became A Viral And Widely Copied Marketing Tactic</a>&nbsp;(Forbes)</p>


Spotify Wrapped Is Coming Soon—What We Know About This Year’s Iteration


<h2 class="wp-block-heading" id="h-topline">TOPLINE</h2>



<p>Shares of Spotify rose by about 5% on Monday, after the company announced it will once again raise the prices for its subscription plans in the U.S., following an increase in subscribers.</p>



<h2 class="wp-block-heading" id="h-key-facts">KEY FACTS</h2>



<p>Spotify shares rose to over $310 as of 10 a.m. Monday, following an earlier surge in premarket trading.</p>



<p>The music streaming firm&nbsp;<a href="https://newsroom.spotify.com/2024-06-03/adjusting-spotify-premium-prices-in-the-us" rel="noreferrer noopener" target="_blank">said</a>&nbsp;it would raise the monthly prices of its ad-free, premium subscription tiers in the U.S. starting in July: the individual plan will cost $11.99 per month, up from $10.99, the Duo plan increased from $14.99 to $16.99 and the family plan increased by $3 to $19.99 per month.</p>



<p>Spotify will notify customers with premium subscriptions with an email next month, saying its price hikes will allow the company to “invest in and innovate on our product offerings and features and bring users the best experience.”</p>



<h2 class="wp-block-heading" id="h-what-to-watch-for">WHAT TO WATCH FOR</h2>



<p>Spotify is expected to roll out a $11 monthly subscription tier that will offer music and podcasts without audiobooks, requiring users on the plan to pay for audiobooks, Bloomberg&nbsp;<a href="https://www.bloomberg.com/news/articles/2024-04-03/spotify-is-changing-how-it-charges-customers-with-new-plans-and-prices?utm_medium=social&amp;utm_source=twitter&amp;utm_content=business&amp;cmpid=socialflow-twitter-business&amp;utm_campaign=socialflow-organic" rel="noreferrer noopener" target="_blank">reported</a>. Spotify will announce a new “supremium” plan that includes high-fidelity audio at a higher price, though the company has not released details about the plan since being in the works since 2021, sources told Bloomberg.</p>



<h2 class="wp-block-heading" id="h-big-number">BIG NUMBER</h2>



<p>239 million. That’s how many subscribers Spotify&nbsp;<a href="https://s29.q4cdn.com/175625835/files/doc_financials/2024/q1/Q1-2024-Shareholder-Deck-FINAL.pdf" rel="noreferrer noopener" target="_blank">reported</a>&nbsp;in its first quarter this year, an increase of 14% year-over-year.</p>



<h2 class="wp-block-heading" id="h-key-background">KEY BACKGROUND</h2>



<p>Spotify previously announced price hikes for its monthly subscription tiers last year, when it raised its individual subscription price to $10.99. The company now charges more for its premium, ad-free subscriptions than rivals Amazon and Apple, which charge $9.99 and $10.99 for their individual plans, respectively. Additional price hikes followed Spotify&#8217;s announcement that it would offer subscribers 15 hours of audiobooks per month to compete against Amazon’s Audible.</p>



<p>.</p>


Markets Open On Wednesday As Federal Reserve Is Set To Make Latest Rate Increase Announcement

Spotify Shares Jump 5% Ahead Of Subscription Price Hikes

Green Modern Split Screen Tutorial YouTube Thumbnail (7)

SOUND STRATEGIES: The Innovators Going Global With African Music


<h2 class="wp-block-heading has-text-align-center" id="h-eswatini-and-south-africa-dj-and-record-producer"><strong>eSwatini and South Africa | DJ and record producer</strong></h2>



<h3 class="wp-block-heading has-text-align-center" id="h-spotify-monthly-listeners-1-8-million-youtube-total-average-views-33-million-views"><strong>Spotify Monthly Listeners:</strong>1.8 Million<br><strong>YouTube Total Average Views</strong>: 33 Million views</h3>



<h3 class="wp-block-heading has-text-align-center" id="h-social-media-net-worth-instagram-2-million-twitter-390-k-facebook-236k-tiktok-1-7-million"><span style="text-decoration: underline;"><strong>SOCIAL MEDIA NET WORTH</strong><br></span><strong>Instagram</strong>: 2 Million <br><strong>Twitter:</strong> 390.K <br><strong>Facebook: </strong>236K <br><strong>TikTok: </strong>1.7 Million</h3>



<p><strong>Words and Curation:</strong> Chanel Retief|<strong>Art Director</strong>: Lucy Nkosi | <strong>Photography</strong>: Katlego Mokubyane <strong>Photography Assistant:</strong> Sbusiso Sigidi Studio: NewKatz Studio, Johannesburg| <strong>Videographer</strong>: @astro.vn |  <strong>CNBC Africa Videographer:</strong> Thabo Mathebula| <strong>Video Editor: </strong>Chanel Retief| <strong>Styling</strong>: Bontlefeela Mogoye and Wanda Baloyi | <strong>Outfits supplied by</strong>: Kworks Design; Imprint South Africa; House of Suitability; LSJ Designs| <strong>Hair &amp; Makeup:</strong> Makole Made</p>



<hr class="wp-block-separator has-alpha-channel-opacity"/>


<div class="wp-block-image">
<figure class="aligncenter size-large is-resized"><img loading="lazy" decoding="async" width="793" height="1024" src="https://cms.forbesafrica.com/wp-content/uploads/2023/10/OFC-793x1024.jpg" alt="" class="wp-image-59820" style="aspect-ratio:0.7744140625;width:537px;height:auto" srcset="https://cms.forbesafrica.com/wp-content/uploads/2023/10/OFC-793x1024.jpg 793w, https://cms.forbesafrica.com/wp-content/uploads/2023/10/OFC-232x300.jpg 232w, https://cms.forbesafrica.com/wp-content/uploads/2023/10/OFC-768x991.jpg 768w, https://cms.forbesafrica.com/wp-content/uploads/2023/10/OFC-1190x1536.jpg 1190w, https://cms.forbesafrica.com/wp-content/uploads/2023/10/OFC-1586x2048.jpg 1586w, https://cms.forbesafrica.com/wp-content/uploads/2023/10/OFC-scaled.jpg 1983w" sizes="auto, (max-width: 793px) 100vw, 793px" /></figure></div>


<blockquote class="wp-block-quote has-text-align-center is-layout-flow wp-block-quote-is-layout-flow">
<p>“What do I do to make sure I stay relevant? I’ve been granted this beautiful blessing. How do I make it the rest of my life?”</p>
</blockquote>



<p>ZWANE, ALSO known as Uncle Waffles, is a true depiction of Generation Z, the demographic cohort shaped by the digital age and shifting financial landscape. Speaking to FORBES AFRICA about her trending accomplishments, Zwane says becoming an artist was not her initial plan. Destiny ordained it. And how.</p>



<p>“During the Covid-19 lockdown, I was working for a broadcasting company. I was doing small interviews with creatives here and there,” Zwane says. “And then one day I interviewed a DJ.” Zwane asked the DJ if she too could learn the art.</p>



<p>“It went from just a conversation to a couple of sessions, to eight hours a day for nine months, to falling in love with something I didn&#8217;t think I could love. I took a risk; I put out a small post I edited on Picsart, [and here I am].”</p>



<p>Through the star power of social media, the eSwatini- born DJ was able to reach millions of viewers and that kick-started her career. Raised by a single mother who believed she could be whatever she wanted to be, gave her the added confidence.</p>



<p>Indeed, it is risky business becoming an artist.</p>



<p>“She encouraged me to just go for it,” Zwane says. “As much as she was always like ‘do it but have a backup plan’, she always believed that because I am creatively inclined, I should just go for it. So when I was packing my bags and going to find gigs, she always believed in me.&#8221;</p>



<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"><div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="Meet Cover Star: Lungelihle Zwane (Uncle Waffles) &quot;I Want To Be A Holistic Brand.&quot;" width="500" height="281" src="https://www.youtube.com/embed/ALQAmVGR81c?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>
</div></figure>



<p>Following the release of her debut single <em>Tanzania</em>, which reportedly took three months to perfect, Zwane’s creation was ranked by <em>Rolling Stone </em>magazine as the eighth best Afropop song of 2022, with critics describing her as “a global ambassador for Amapiano”. From across the world, she has received praise from award-winning A-list artists such as Beyoncé, Ciara and Drake, who have described her as a “top DJ [with] top sound”, giving further impetus to her fame.</p>



<p>“There is this really cool DJ out right now, her name is Uncle Waffles,” American singer, actor, and television personality Kelly Rowland reportedly said in May.</p>



<p>. “&#8230;She is so cool. She just played at Coachella, but I have known about this girl for at least about a year now.”</p>



<p>However, as successful as she has been, it has not been without roadblocks.</p>



<p>Still young and entering the industry the way she did, staying relevant is crucial to Zwane.</p>



<p>“Being thrown into the industry, I had to learn while running. Because the typical stories [are] that you blow up, and then it falls away, you kind of disappear into the mix. So for me, I&#8217;ve blown up, [but] what do I do to make sure I stay relevant? I&#8217;ve been granted this beautiful blessing. How do I make it the rest of my life?”</p>



<p>For artists, it is not only about the music anymore. The stance taken by many entering the sector is that it&#8217;s also about positioning yourself as a brand. Beyoncé had athleisure brand Ivy Park, which was in collaboration with Adidas on several collections.</p>



<p>American rapper and singer-songwriter Travis Scott launched not only a burger with McDonald’s but also a sneaker with Nike.</p>



<p>Luckily for Zwane, it’s no different as she has gained several endorsement deals in this short span with some of the biggest brands in the business, including South African multinational mobile telecommunications company MTN, and supplements brand, Slow- Mag. Recently, the talk of the town in South Africa has been her collaboration with one of the world’s most popular fast-food brands, KFC.</p>



<p>In September, Zwane launched a new campaign for the brand featuring a food item in her name, the Uncle Waffles Burger. Despite mixed reviews, the significance of this “one-of-a-kind” burger was highlighted by KFC as showcasing “her journey in music and life at a time when her international success is gaining momentum”.</p>



<p>“This is why we chose to create a campaign that shared real-life locations that have contributed to Uncle Waffle&#8217;s success,” Hloni Mohope, Marketing Director at KFC Africa tells FORBES AFRICA. “Social posts dropped clues daily so fans could physically discover and unlock the beautifully-designed custom QR code artworks at each location. This allowed them to tangibly experience and follow Uncle Waffles&#8217; meteoric rise. This story-telling aspect has really resonated with fans and helped us spread the beauty of Amapiano and celebrate Uncle Waffles. We are so proud to have partnered with such a force. This campaign has seen two giants with great taste create magic and bring it [to] the people!”</p>



<p>&#8220;I want to become a holistic brand who dabbles in everything,” Zwane attests.</p>



<p>Part of this challenge – and something she has enjoyed doing – is the art of storytelling. Although there are those who downplay her DJing, especially as she is dancing, Zwane’s belief has always been to change the narrative.</p>



<p>“What you realize is that internationally, they don&#8217;t understand the music,” says the ‘Princess of Amapiano’ (as dubbed by Billboard). “But they can only understand it through you. You&#8217;re the one that tells the story. So they watch you, they understand that you&#8217;ve told the story, and you&#8217;ve gained a huge audience of people by doing so.”</p>



<p>Jocelyne Muhutu-Remy, Spotify’s sub-Saharan Africa Managing Director, wrote in August that in her opinion, young African artists are taking over the global stage and contributing to the growth of the African market, which could even rival markets like Korean pop (k-pop) in the international arena.</p>



<p>“This young population continues to grow rapidly while African talent across both spheres of music and sports is booming in abundance. This is demonstrated by the rise in popularity</p>



<p>and proliferation of African genres like Amapiano and Afrobeats internationally,” Muhutu-Remy wrote.</p>



<p>It’s Zwane’s time, from performances at the prestigious Coachella and the Met Gala (“fashion’s biggest night out”) after- party in May, attended by some of the world&#8217;s biggest names in the entertainment and music business, to having a <em>BBC RADIO 1 </em>Residency, Zwane wants to see more young women take center stage but hopes that they don’t feel the imminent pressure to always be viral or trending.</p>



<p>Her advice: “Your success can come at a rate that&#8217;s perfectly fine to you. The idea that you blow up and your life changes tomorrow is not as easy. You can literally be me with just a little more time.</p>



<p>But maybe you could even do better than me because you had more time. You have got to figure out who exactly you want to be.”</p>



<div class="wp-block-media-text is-stacked-on-mobile"><figure class="wp-block-media-text__media"><img loading="lazy" decoding="async" width="1024" height="341" src="https://cms.forbesafrica.com/wp-content/uploads/2023/10/FA-OCT_NOV-Banner-1024x341.jpg" alt="" class="wp-image-59826 size-full" srcset="https://cms.forbesafrica.com/wp-content/uploads/2023/10/FA-OCT_NOV-Banner-1024x341.jpg 1024w, https://cms.forbesafrica.com/wp-content/uploads/2023/10/FA-OCT_NOV-Banner-300x100.jpg 300w, https://cms.forbesafrica.com/wp-content/uploads/2023/10/FA-OCT_NOV-Banner-768x256.jpg 768w, https://cms.forbesafrica.com/wp-content/uploads/2023/10/FA-OCT_NOV-Banner-1536x512.jpg 1536w, https://cms.forbesafrica.com/wp-content/uploads/2023/10/FA-OCT_NOV-Banner-2048x683.jpg 2048w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /></figure><div class="wp-block-media-text__content">
<p class="has-text-align-center"><strong><a href="https://shop.forbesafrica.com/product/single-digital-issue-oct-nov-2024-copy/">Get your digital copy here</a></strong></p>
</div></div>


Green Modern Split Screen Tutorial YouTube Thumbnail

Meet Cover Star: Lungelihle Zwane (Uncle Waffles)-“I WANT TO BECOME A HOLISTIC BRAND”


<h2 class="wp-block-heading" id="h-topline">TOPLINE</h2>



<p>Spotify will start using artificial intelligence to translate podcasts into other languages, the company announced Monday as part of a partnership with OpenAI, as Spotify becomes the latest to use generative AI for its products.</p>



<h2 class="wp-block-heading" id="h-key-facts">KEY FACTS</h2>



<p>Spotify&nbsp;<a href="https://newsroom.spotify.com/2023-09-25/ai-voice-translation-pilot-lex-fridman-dax-shepard-steven-bartlett/" target="_blank" rel="noreferrer noopener">announced</a>&nbsp;Monday that it is releasing a pilot for its “Voice Translation” feature, which will translate podcasts into other languages that will match the original speaker’s voice and style.</p>



<p>The feature was created in partnership with OpenAI, which&nbsp;<a href="https://openai.com/blog/chatgpt-can-now-see-hear-and-speak" target="_blank" rel="noreferrer noopener">announced</a>&nbsp;Monday that it was releasing new “voice and image capabilities” for ChatGPT, allowing users to speak with the AI chatbot with generated “human-like audio from just text and a few seconds of sample speech.”</p>



<p>Spotify’s new feature is based on OpenAI’s voice transcription tool Whisper, which transcribes English speech and translates other languages into English.</p>



<p>The pilot includes three podcast episodes—including the&nbsp;<em>Lex Fridman Podcast</em>,&nbsp;<em>Armchair Expert&nbsp;</em>and&nbsp;<em>The Diary of a CEO with Steven Bartlett</em>—available in Spanish to both subscribed and unsubscribed users, with episodes available in French and German “in the coming days and weeks.”</p>



<p>All translated podcasts will be available in Spotify’s “<a href="https://spoti.fi/VoiceTranslation" target="_blank" rel="noreferrer noopener">Voice Translations Hub</a>,” which will be updated with additional episodes and podcasts “over the coming weeks and months.”</p>



<h2 class="wp-block-heading" id="h-big-number">BIG NUMBER</h2>



<p>100 million. That’s how many users “regularly” listen to podcasts on Spotify, according to the company.</p>



<h2 class="wp-block-heading" id="h-key-background">KEY BACKGROUND</h2>



<p>Other companies have started to use generative AI for its products in recent months. Meta&nbsp;<a href="https://www.forbes.com/sites/irenebenedicto/2023/08/02/meta-launches-tool-to-create-music-using-ai-heres-what-to-know/?sh=4eddc404444d">announced</a>&nbsp;earlier this year that it would release AudioCraft, a tool that allows users to create AI-generated music and sounds. The&nbsp;<a href="https://www.ft.com/content/6f022306-2f83-4da7-8066-51386e8fe63b?list=intlhomepage" target="_blank" rel="noreferrer noopener"><em>Financial Times</em></a>&nbsp;reported in August that Google and Universal Music Group were in discussions over whether to license artists’ melodies and vocals for AI-generated music. Google also&nbsp;<a href="https://www.forbes.com/sites/tylerroush/2023/09/19/google-expands-ai-chatbot-bard-to-apps-like-gmail-drive-and-youtube/?sh=3282847f4905">announced</a>&nbsp;earlier this month that it had integrated its AI chatbot Bard into its other applications, including YouTube, Gmail and Drive. Amid concerns over privacy and safety, OpenAI said it was gradually releasing its image and voice capabilities for ChatGPT, after the company warned the new features could present new risks, including “the potential for malicious actors to impersonate public figures or commit fraud.”</p>



<p>Forbes Daily: Get our best stories, exclusive reporting and essential analysis of the day’s news in your inbox every weekday.Sign Up</p>



<p>By signing up, you accept and agree to our&nbsp;<a href="https://www.forbes.com/terms-and-conditions" target="_blank" rel="noreferrer noopener">Terms of Service</a>&nbsp;(including the class action waiver and arbitration provisions), and&nbsp;<a href="https://www.forbes.com/privacy" target="_blank" rel="noreferrer noopener">Privacy Statement</a>.</p>



<h2 class="wp-block-heading" id="h-further-reading">FURTHER READING</h2>



<p><a href="https://www.forbes.com/sites/tylerroush/2023/08/08/google-and-universal-music-group-negotiating-ai-generated-music-tool-report-says/?sh=3d4d29cf22e7">Google And Universal Music Group Negotiating AI-Generated Music Tool, Report Says</a>&nbsp;(<em>Forbes</em>)</p>



<p><a href="https://www.forbes.com/sites/irenebenedicto/2023/08/02/meta-launches-tool-to-create-music-using-ai-heres-what-to-know/?sh=4eddc404444d">Meta Launches Tool To Create Music Using AI—Here’s What To Know</a> (<em>Forbes</em>)<a href="https://www.forbes.com/sites/tylerroush/"></a></p>


Photo Logo Illustrations

Spotify Will Translate Podcasts Into Other Languages Using AI


<h2 class="wp-block-heading" id="h-topline">TOPLINE</h2>



<p>Spotify said it paid out $7 billion in royalties last year to rights holders, in a&nbsp;<a href="https://loudandclear.byspotify.com/" target="_blank" rel="noreferrer noopener">transparency report</a>&nbsp;released Thursday, following critiques from within the music industry that the streaming service pays artists minuscule amounts.</p>



<h2 class="wp-block-heading" id="h-key-facts">KEY FACTS</h2>



<p>Spotify’s royalty payments increased by $2 billion in 2021, up from $5 billion in 2020.</p>



<p>Instead of paying artists directly, Spotify pays rights holders—record labels, distributors or others—who artists allow to put their music on the platform, and who in turn pay the artists with the money earned on the streaming service.</p>



<p>The streaming service said that for the first time, over 1,000 artists made more than $1 million through royalties on its platform.</p>



<p>Spotify said it paid out over $1 billion to publishing rights holders and $4 billion to major record labels.</p>



<p>Spotify said that 28% of the artists who self-distribute on the platform, meaning they are not attached to a record label, generated over $10,000.</p>



<p>As of 2021, Spotify said it had paid $30 billion in royalties to the music industry, and the $7 billion paid out last year was more than double the amount paid out in 2017.</p>



<h2 class="wp-block-heading" id="h-big-number">BIG NUMBER</h2>



<p>$0.0033 to $0.0054. That’s how much money Spotify paid artists (through their rights holders) per stream in 2021, according to&nbsp;<a href="https://www.businessinsider.com/how-much-does-spotify-pay-per-stream" target="_blank" rel="noreferrer noopener">Insider</a>. That means it would take roughly 250 streams for an artist to earn $1. Singer and producer T-Pain shared a chart&nbsp;<a href="https://twitter.com/TPAIN/status/1476032631255060490?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1476032631255060490%7Ctwgr%5E%7Ctwcon%5Es1_&amp;ref_url=https%3A%2F%2Fmusictech.com%2Fnews%2Findustry%2Ftpain-on-how-much-artists-make-per-stream-songs-spotify-tidal-apple%2F" target="_blank" rel="noreferrer noopener">on Twitter</a>&nbsp;in December that showed artists need 315 streams on Spotify to make $1, though it’s not clear what the source of this information is. Competitor Apple Music paid an average of one cent per stream in 2021, according to the&nbsp;<a href="https://www.wsj.com/articles/apple-music-reveals-how-much-it-pays-when-you-stream-a-song-11618579800?st=6c732oz0fvn0ssd&amp;reflink=article_copyURL_share" target="_blank" rel="noreferrer noopener"><em>Wall Street Journal</em></a>.</p>



<h2 class="wp-block-heading" id="h-contra">CONTRA</h2>



<p>Spotify&nbsp;<a href="https://loudandclear.byspotify.com/?question=per-stream-rate" target="_blank" rel="noreferrer noopener">noted</a>&nbsp;that it does not pay artists per stream, instead paying them based on share of overall streams on the platform, and doesn’t believe rate per stream is “is a meaningful number to analyze.” The streaming service said there are a number of factors that play into why it’s rate per stream ratio seems low, including a high number of streams per listener and its ad-supported subscription free offering. The company&nbsp;<a href="https://loudandclear.byspotify.com/?question=spotify-pay-per-stream" target="_blank" rel="noreferrer noopener">believes</a>&nbsp;“artists care more about a larger paycheck than a higher per-stream rate.”</p>



<h2 class="wp-block-heading" id="h-key-background">KEY BACKGROUND</h2>



<p>Spotify has 406 million active monthly users and is one of the most popular streaming platforms. Despite its popularity with listeners, Spotify has long been criticized by artists who believe they should earn more from streams on it. Last year, a group of independent artists held a series of protests in front of Spotify artists demanding 1 cent per stream be doled out to rights holders, according to the<em>&nbsp;</em><a href="https://www.latimes.com/entertainment-arts/music/story/2021-04-19/spotify-artists-royalty-rate-apple-music" target="_blank" rel="noreferrer noopener"><em>Los Angeles Times</em></a>. Several mainstream and big-name artists have spoken out against low payments. In 2014, three years after Spotify launched in the U.S.,&nbsp;<a href="https://www.theverge.com/2017/6/9/15767986/taylor-swift-apple-music-spotify-statements-timeline" target="_blank" rel="noreferrer noopener">Taylor Swift</a>&nbsp;removed her music from the platform because of how it paid artists, though she later returned and still remains on it. Paul McCartney, Kate Bush and Sting were among the musicians who&nbsp;<a href="https://www.rollingstone.com/music/music-news/paul-mccartney-kate-bush-noel-gallagher-uk-streaming-revenue-reform-1158328/" target="_blank" rel="noreferrer noopener">signed a letter</a>&nbsp;to U.K. Prime Minister Borris Johnson last year urging reforms in the streaming industry, including increased payouts. Last month, Kanye West opted to release his latest album&nbsp;<em>Donda 2</em>&nbsp;on his own device, rather than streaming services, because of how artists have been “hurt” by the platforms, he said. When joining a growing chorus of creators who removed their work from Spotify last month in protest of comments made by Joe Rogan, singer India.Arie called out the streaming service for paying artists “a fraction of a penny” but paying over $100 million to exclusively distribute Rogan’s show.</p>



<h2 class="wp-block-heading" id="h-further-reading">FURTHER READING</h2>



<p><a href="https://www.forbes.com/sites/marisadellatto/2022/02/18/kanye-west-claims-to-sell-6200-of-the-200-music-players-he-says-will-be-only-way-to-get-his-new-album/?sh=3402f5b76fda">Kanye West Claims To Sell 6,200 Of The $200 Music Players He Says Will Be Only Way To Get His New Album</a>&nbsp;(Forbes)</p>



<p><a href="https://www.forbes.com/sites/marisadellatto/2022/02/02/crosby-and-stills-join-nash-and-young-in-spotify-boycott-over-joe-rogan---heres-the-full-list/?sh=3667f84c5049">Crosby And Stills Join Nash And Young In Spotify Boycott Over Joe Rogan — Here&#8217;s The Full List&nbsp;</a>(Forbes)</p>



<p><a href="https://www.nytimes.com/2021/05/07/arts/music/streaming-music-payments.html" target="_blank" rel="noreferrer noopener">Musicians Say Streaming Doesn’t Pay. Can the Industry Change?</a> (New York Times)</p>



<p>By Marisa Dellatto, Forbes Staff</p>


JAPAN-SWEDEN-MUSIC-INTERNET-TECHNOLOGY

Spotify Says It Paid $7 Billion In Royalties In 2021 Amid Claims Of Low Pay From Artists

Ukraine conflict – Russia

Volkswagen, IKEA And Spotify—Here’s The Growing List Of Companies Cutting Ties With Russia Over Invasion


<p>&nbsp;It’s been a big week for high-profile apologies.</p>



<p>Virginia Gov.&nbsp;<a href="https://www.forbes.com/sites/dereksaul/2022/02/07/governor-youngkin-apologizes-for-spat-with-teen-critic/?sh=28a40f6f1fb0">Glenn Youngkin said he regretted</a>&nbsp;what he called an “<a href="https://twitter.com/GlennYoungkin/status/1490698845474496520?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1490698845474496520%7Ctwgr%5E%7Ctwcon%5Es1_&amp;ref_url=https%3A%2F%2Fwww.washingtonpost.com%2Fdc-md-va%2F2022%2F02%2F07%2Fyoungkin-apology-teen%2F" target="_blank" rel="noreferrer noopener">unauthorized” Twitter</a>&nbsp;swipe from his team to a teen. Biden administration science adviser Eric Lander&nbsp;<a href="https://www.forbes.com/sites/nicholasreimann/2022/02/07/white-house-science-advisor-accused-of-bullying-staff-despite-bidens-having-a-zero-tolerance-policy/?sh=62ccfd1d4c27">apologized</a>&nbsp;for his treatment of subordinates.&nbsp;<a href="https://www.forbes.com/sites/joshwilson/2022/02/06/joe-rogan-apologizes-for-consistent-and-widespread-use-of-racial-slur/?sh=56dc28e13165">Joe Rogan said he was sorry</a>&nbsp;for his use of the n-word in past podcasts just a week after an earlier apology about conversations on his show with&nbsp;<a href="https://www.forbes.com/sites/siladityaray/2022/01/31/joe-rogan-apologizes-after-spotify-podcast-controversy-says-he-will-try-balance-things-out-in-the-future/?sh=181d30a33d13">vaccine skeptics</a>. And Spotify CEO&nbsp;<a href="https://www.forbes.com/sites/siladityaray/2022/02/07/spotify-ceo-apologizes-to-staff-over-joe-rogan-racial-slur-controversy-but-says-silencing-him-is-not-the-answer/?sh=60d9442e45a4">Daniel Ek&nbsp;</a><a href="https://twitter.com/pkafka/status/1490511000499544068" target="_blank" rel="noreferrer noopener">apologized</a>&nbsp;to staff for the impact on them of the racial slur controversy as the streaming service’s&nbsp;<a href="https://www.forbes.com/sites/edwardsegal/2022/01/30/how-spotify-is-responding-to-their-unfolding-crisis/?sh=334a27125d71">P.R. crisis</a>&nbsp;continues.</p>



<p>But how effective apologies are often depends on how much responsibility the person takes—and increasingly important, who’s doing the listening. Communication pros say that while good apologies take unfettered ownership for what happened, the practicalities of a divided country mean it’s harder than ever to offer an apology that will appease everyone.&nbsp;</p>



<p>“In any discussion today it’s almost impossible to make everyone happy—and apologies are the same,” says Davia Temin, a communications adviser who is also a contributor to&nbsp;<em>Forbes</em>. “If you string a few of the right words together it can sound to people like it was an apology. … The art of the non-apology has been refined tremendously.”&nbsp;</p>



<p>Lander&nbsp;<a href="https://www.washingtonpost.com/politics/2022/02/07/lander-white-house-apologizes/" target="_blank" rel="noreferrer noopener">apologized</a>&nbsp;directly for his conduct amid a White House review that&nbsp;<a href="https://www.politico.com/news/2022/02/07/eric-lander-white-house-investigation-00006077" target="_blank" rel="noreferrer noopener">reports said</a>&nbsp;found evidence he had demeaned his staff<strong>&nbsp;</strong>at the Office of Science and Technology Policy. Monday night, he&nbsp;<a href="https://www.washingtonpost.com/politics/2022/02/07/lander-white-house-apologizes/" target="_blank" rel="noreferrer noopener">tendered his resignation</a>&nbsp;to President Joe Biden, who had made past promises to have no tolerance for disrespectful behavior in the workplace.&nbsp;</p>



<p>In a tweet, the teen to whom&nbsp;<a href="https://www.forbes.com/sites/dereksaul/2022/02/07/governor-youngkin-apologizes-for-spat-with-teen-critic/?sh=72d2df7f1fb0">Youngkin apologized</a>, Ethan Lynne, said he didn’t think Youngkin’s statement was an apology. (The Youngkin team’s Twitter account&nbsp;<a href="https://twitter.com/BPaves/status/1490325359568449536?s=20&amp;t=LjpwEJp1t13JFyS1GuGz0g" target="_blank" rel="noreferrer noopener">shared a since-removed photo of Lynne</a>, who has volunteered in Democratic politics, with former Va. Gov. Ralph Northam (D), calling out past controversies.) “While he acknowledged the situation, Governor Youngkin did not apologize and did not condemn what happened over the weekend,” Lynne&nbsp;<a href="https://twitter.com/ethanclynne/status/1490704931514368008?s=20&amp;t=OEy2Oadr85OlbghZ06okxw" target="_blank" rel="noreferrer noopener">tweeted</a>.</p>



<p>Meanwhile, Rogan’s most recent apology prompted&nbsp;<a href="https://www.instagram.com/p/CZlnH8MAb8L/" target="_blank" rel="noreferrer noopener">applause from many Instagram followers</a>&nbsp;and a rebuke from&nbsp;<a href="https://www.washingtonpost.com/politics/2022/02/08/trump-joe-rogan-spotify-stop-apologizing/" target="_blank" rel="noreferrer noopener">former President Donald Trump</a>. And Spotify CEO Ek’s apology was&nbsp;<a href="https://qz.com/2123625/what-spotifys-ceo-was-really-saying-in-his-memo-about-joe-rogan/" target="_blank" rel="noreferrer noopener">held up by some observers</a>&nbsp;as a “classic non-apology apology” when the Spotify CEO said he’s “deeply sorry for the way&nbsp;<em>The Joe Rogan Experience&nbsp;</em>controversy continues to impact” his employees, apologizing not for what happened but for how it impacted them.</p>



<p>For an apology to be successful, it needs to admit a mistake and take ownership of it, describe what a leader is going to do to fix it and explain why it won’t happen again, says Paul Argenti, a professor at Dartmouth College’s Tuck School of Business who studies communications issues. When it doesn’t, he says, “I would argue it does more harm than good. You’re creating another problem. One of the rules of crisis management is to solve the problem once and for all, not put a band-aid on it and then see if we can get through this.”&nbsp;</p>



<p>Argenti says that apologizers who don’t take full responsibility follow a pattern. “When you see people using that strategy, they’re trying to tre­­­­­­­­ad a line,” he says. When leaders do that, they may be “trading off the legal issues and the issues you face in the court of public opinion,” he says. “They want to have their cake and eat it too.”&nbsp;</p>



<p>“One of the rules of crisis management is to solve the problem once and for all, not put a band-aid on it and then see if we can get through this.”&nbsp;—Dartmouth College’s Tuck School of Business professor Paul Argenti</p>



<p>Temin agrees that ideally, apologies don’t qualify what happened or who was responsible. But even if the definition of what’s seen as a “good apology” hasn’t changed, she says the practicalities of it have.&nbsp;</p>



<p>In a country as divided as ours, some will see a half-apology as the right move, while others will find it lacking. “People are more calculating in who their audiences are—and speaking to their audience—as opposed to just speaking their truth,” says Temin.</p>



<p>She points to Youngkin’s comment about regretting the “unauthorized” tweet as an example. “A lot of people in Virginia will buy that,” she says. In a divided political and cultural landscape, she says, “one person’s apology is another’s non-apology.”</p>



<p>When it comes to apologies, leaders must have courage to speak about things in a way that rings true and doesn’t qualify them, she says, something that’s harder than ever today. “We attack one another so easily,” she says. “There’s a reason why everybody is pulling back on what they say.”</p>



<p><a href="https://www.forbes.com/sites/jenamcgregor/"></a><strong><em>By Jena McGregor, Forbes Staff</em></strong></p>


What The Spotify, Glenn Youngkin And Eric Lander Statements Tell Us About The Art Of Apologizing Today


<h2 class="wp-block-heading" id="h-topline">TOPLINE</h2>



<p>The audio streaming service Spotify has removed content from hundreds of comedians, including Kevin Hart, Tiffany Haddish and John Mulaney, amid a dispute over royalties and copyright, according to the&nbsp;<a href="https://www.wsj.com/articles/spotify-removes-some-comedians-work-from-streaming-service-11638626401?mod=pls_whats_news_us_business_f" target="_blank" rel="noreferrer noopener"><em>Wall Street Journal</em></a>.</p>



<h2 class="wp-block-heading">KEY FACTS</h2>



<p>The comedians are working with a global rights administration company, Spoken Giants, to negotiate royalty payments for composition copyright of their jokes with streaming services like Spotify, Youtube and Pandora, according to the&nbsp;<em>Journal</em>.</p>



<p>With a deal yet to be reached, Spotify told Spoken Giants that the content would be taken down the day before Thanksgiving.</p>



<p>Comedians get paid performance fees when recordings are played on a streaming service like Spotify, Apple or YouTube, but they don’t receive royalties for having written the jokes like songwriters do for their songs.</p>



<p>Spotify did not immediately respond to&nbsp;<em>Forbes’</em>&nbsp;request for comment, but told the&nbsp;<em>Wall Street Journal</em>, the company has paid “significant amounts of money” for comedy content and wants “to continue” doing so.</p>



<h2 class="wp-block-heading">KEY BACKGROUND</h2>



<p>Spoken Giants, which&nbsp;<a href="https://www.forbes.com/sites/jacquelineschneider/2020/10/30/spoken-giant-launches-as-first-royalty-administration-for-podcasters-and-comedians/?sh=2af28be226b4">launched</a>&nbsp;in 2019, claims on its&nbsp;<a href="https://www.spokengiants.com/" target="_blank" rel="noreferrer noopener">website</a>&nbsp;to be the”first global rights administration company” for “spoken word copyrights,” and represents comedians, podcast authors and speech writers. The company’s pilot program collected over&nbsp;<a href="https://www.forbes.com/sites/jacquelineschneider/2020/10/30/spoken-giant-launches-as-first-royalty-administration-for-podcasters-and-comedians/?sh=2af28be226b4">$100,000&nbsp;</a>in royalties on behalf of initial members, including comedians Lewis Black, Gerry Dee and Dan Cummins.&nbsp;</p>



<h2 class="wp-block-heading">TANGENT</h2>



<p>Conflicts over copyright and royalties continue in the music industry. In March, over&nbsp;<a href="https://www.billboard.com/pro/songwriters-the-pact-rights-open-letter/" target="_blank" rel="noreferrer noopener">300 songwriters</a>&nbsp; wrote an open letter demanding that artists stop “using bully tactics and threats” to infringe on a songwriter’s royalties for writing top songs. Artists like Taylor Swift have also been fighting to regain a larger share of the royalties to their music by re-recording and releasing new versions of songs. Private equity firm Shamrock Capitol currently owns the masters of some of Swift’s albums she released under Big Hit Music.</p>



<h2 class="wp-block-heading">FURTHER READING</h2>



<p><a href="https://www.wsj.com/articles/spotify-removes-some-comedians-work-from-streaming-service-11638626401?mod=pls_whats_news_us_business_f" target="_blank" rel="noreferrer noopener">Spotify Removes Some Comedians’ Work From Streaming Service</a>&nbsp;(<em>Washington Post</em>)</p>



<p><a href="https://time.com/5949979/why-taylor-swift-is-rerecording-old-albums/" target="_blank" rel="noreferrer noopener">Here’s Why Taylor Swift Is Re-Releasing Her Old Albums</a> (<em>Time</em>)</p>



<p><em><strong>By Kimberlee Speakman, Forbes Staff</strong></em></p>


Netflix’s “True Story” New York Screening

Spotify Removes Content From Comedians Including Kevin Hart, John Mulaney Over Royalties Dispute


<p id="h-after-a-six-year-hiatus-singer-adele-released-her-anticipated-new-track-easy-on-me-which-has-topped-the-u-s-itunes-chart-and-attracted-millions-of-views-within-hours-of-being-uploaded-to-youtube-to-become-the-site-s-top-trending-clip-ahead-of-her-upcoming-album-30-released-next-month"><meta charset="utf-8">TOPLINE: After a six-year hiatus, singer Adele released her anticipated new track, ‘Easy On Me,’ which has topped the U.S. iTunes chart and attracted millions of views within hours of being uploaded to YouTube to become the site’s top trending clip ahead of her upcoming album, <em>30, </em>released next month.</p>



<h2 class="wp-block-heading" id="h-key-facts">KEY FACTS</h2>



<p>The music&nbsp;<a href="https://www.youtube.com/watch?v=U3ASj1L6_sY&amp;ab_channel=AdeleVEVO" target="_blank" rel="noreferrer noopener">video</a>&nbsp;for “Easy On Me” attracted nearly 15 million views in the first eight hours of being uploaded, a figure that is growing rapidly as European and U.S. listeners wake up.&nbsp;&nbsp;</p>



<p>Fans of the British singer&nbsp;<a href="https://www.theguardian.com/music/2021/oct/15/lil-nas-x-and-alicia-silverstone-react-to-adeles-new-single-easy-on-me-you-always-make-me-cry" target="_blank" rel="noreferrer noopener">praised</a>&nbsp;the new track and lauded the video’s homage to Adele’s earlier hit, “Hello,” both of which were directed by Xavier Dolan.&nbsp;</p>



<p>Within hours of its release, the song had climbed to the top of the U.S. iTunes&nbsp;<a href="https://kworb.net/charts/itunes/us.html" target="_blank" rel="noreferrer noopener">charts</a>&nbsp;and at the time of writing is the fourth-most&nbsp;<a href="https://music.apple.com/us/playlist/top-100-usa/pl.606afcbb70264d2eb2b51d8dbcfa6a12" target="_blank" rel="noreferrer noopener">played</a>&nbsp;song on Apple Music in the U.S..&nbsp;&nbsp;</p>



<h2 class="wp-block-heading" id="h-crucial-quote">CRUCIAL QUOTE</h2>



<p>Adele said&nbsp;<em>30</em>&nbsp;will address her divorce from Simon Konecki, with whom she has a son, in 2019. Its numeric title, as with the singer’s previous releases, signifies her age at the time it was written and the singer&nbsp;<a href="https://www.vogue.co.uk/arts-and-lifestyle/article/adele-british-vogue-interview" target="_blank" rel="noreferrer noopener">said</a>&nbsp;the album is a chance to share “my side” of the separation. “I’ve learned a lot of blistering truths about myself along the way,” Adele said, adding that the writing process was a “maze of absolute mess and inner turmoil” and spanned “the most turbulent period of my life.” Now, Adele said: “I’d go as far as to say I’ve never felt more peaceful in my life. And so, I’m ready to finally put this album out.”&nbsp;https://embedly.forbes.com/widgets/media.html?type=text%2Fhtml&amp;key=3ce26dc7e3454db5820ba084d28b4935&amp;schema=twitter&amp;url=https%3A//twitter.com/adele/status/1448287471649837061&amp;image=https%3A//i.embed.ly/1/image%3Furl%3Dhttps%253A%252F%252Fabs.twimg.com%252Ferrors%252Flogo46x38.png%26key%3D3ce26dc7e3454db5820ba084d28b4935</p>



<h2 class="wp-block-heading" id="h-what-to-watch-for">WHAT TO WATCH FOR</h2>



<p><em>30</em>&nbsp;is due to be&nbsp;<a href="https://www.forbes.com/sites/jemimamcevoy/2021/10/13/adele-announces-new-album-30-will-come-out-next-month/?sh=5a4d9d6f6c2d">released</a>&nbsp;November 19.&nbsp;</p>



<h2 class="wp-block-heading" id="h-key-background">KEY BACKGROUND</h2>



<p>‘<em>30</em>,’ which has been teased for weeks, is one of the most anticipated musical releases of the year. The Grammy-award-winning singer’s previous albums—<em>19</em>,&nbsp;<em>21</em>&nbsp;and&nbsp;<em>25</em>—were all runaway successes and her last studio album,&nbsp;<em>25</em>, and its lead single, ‘Hello,’&nbsp;<a href="https://www.billboard.com/articles/columns/chart-beat/6777905/adele-25-sales-first-week-us#:~:text=It's%20official%3A%20Adele's%2025,sale%20music%20purchases%20in%201991." target="_blank" rel="noreferrer noopener">broke</a>&nbsp;U.S. sales&nbsp;<a href="https://www.reuters.com/article/us-music-charts-adele/adeles-hello-breaks-1-million-digital-sales-in-record-idUSKCN0SR2AX20151103" target="_blank" rel="noreferrer noopener">records</a>.&nbsp;&nbsp;</p>



<h2 class="wp-block-heading" id="h-big-number">BIG NUMBER</h2>



<p>108.2 million. That’s how many YouTube views the platform&#8217;s fastest viral video, the BTS single “Butter,” notched up in 24 hours after release, according to Statista&nbsp;<a href="https://www.statista.com/statistics/478082/fastest-viral-videos-views-in-24-hours/" target="_blank" rel="noreferrer noopener">data</a>. BTS dominates YouTube’s top 20 fastest viral videos to date, with Adele’s latest single rapidly approaching these ranks as of early Friday.</p>



<h2 class="wp-block-heading" id="h-further-reading">FURTHER READING</h2>



<p><a href="https://www.forbes.com/sites/jemimamcevoy/2021/10/13/adele-announces-new-album-30-will-come-out-next-month/?sh=5a4d9d6f6c2d">Adele Announces New Album ‘30’ Will Come Out Next Month</a>&nbsp;(Forbes)</p>



<h2 class="wp-block-heading" id="h-further-viewing">FURTHER VIEWING</h2>



<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"><div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="Adele - Easy On Me (Official Video)" width="500" height="281" src="https://www.youtube.com/embed/U3ASj1L6_sY?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>
</div></figure>



<p><strong><em>By Robert Hart, Forbes Staff</em></strong></p>


The 59th GRAMMY Awards – Roaming Show

Adele’s ‘Easy On Me’ Tops iTunes Chart, Grabs Millions Of Views Hours After Release


<p id="h-topline"><strong>TOPLINE</strong> Swedish billionaire and Spotify CEO Daniel Ek is launching a bid to take over the English soccer club Arsenal with support from three major former stars of the London-based team, the&nbsp;<em>Telegraph</em>&nbsp;<a href="https://www.telegraph.co.uk/football/2021/04/26/exclusive-spotify-founder-launch-arsenal-takeover-bid-three/" target="_blank" rel="noreferrer noopener">reported</a>, just days after Ek&nbsp;<a href="https://www.forbes.com/sites/sergeiklebnikov/2021/04/23/spotifys-daniel-ek-says-he-would-buy-arsenal-if-billionaire-stan-kroenke-agreed-to-sell/?sh=310146166daf">expressed interes</a>t on Twitter in buying the club from its increasingly unpopular American owners.</p>



<h3 class="wp-block-heading" id="h-key-facts">KEY FACTS</h3>



<ul class="wp-block-list"><li>According to the&nbsp;<em>Telegraph</em>, Ek is teaming up with Arsenal legends Thierry Henry, Dennis Bergkamp and Patrick Vieira—who were part of the famous ‘Invincible’ team that won the Premier League title in 2004—to make the bid.</li></ul>



<ul class="wp-block-list"><li>If Ek’s bid is successful the three former Arsenal stars could return to the club and be part of a new administrative setup, leveraging their knowledge of the club and its fan base, the report adds.</li></ul>



<ul class="wp-block-list"><li>The reported bid comes at a time when the club’s American owner—billionaire Stanley Kroenke—has faced anger from fans for his apparent involvement in the failed attempt to set up the breakaway European Super League.</li></ul>



<ul class="wp-block-list"><li>While Kroenke’s son Josh insisted last week that the club wasn’t for sale, the report suggests that the involvement of three popular club legends in the bid would put pressure on him to at least listen to Ek’s offer.</li></ul>



<ul class="wp-block-list"><li><em>Forbes</em>&nbsp;has reached out to Ek and Spotify for a comment.</li></ul>



<h3 class="wp-block-heading" id="h-crucial-quote">CRUCIAL QUOTE</h3>



<p>“As a kid growing up, I’ve cheered for Arsenal as long as I can remember,” Ek tweeted last week while fans were protesting against Kroenke&nbsp;<a href="https://twitter.com/eldsjal/status/1385667437929062403?s=20+" target="_blank" rel="noreferrer noopener">outside</a>&nbsp;the club’s stadium. “If KSE [Kroenke Sports &amp; Entertainment] would like to sell Arsenal I&#8217;d be happy to throw my hat in the ring.”</p>



<h3 class="wp-block-heading" id="h-big-number">BIG NUMBER</h3>



<p>$2.8 billion. That’s the amount the London-based soccer club was&nbsp;<a href="https://www.forbes.com/sites/mikeozanian/2021/04/12/the-worlds-most-valuable-soccer-teams-barcelona-on-top-at-48-billion/?sh=434fc0ae16ac">valued</a>&nbsp;at by&nbsp;<em>Forbes</em>&nbsp;earlier this month, and it ranked eighth on the list of the world’s most valuable soccer clubs for 2021. Ek, whose fortune comes from his 9% stake in music streaming giant Spotify—which he co-founded in 2006—has a net worth of $4.7 billion,&nbsp;<a href="https://www.forbes.com/profile/daniel-ek/?sh=1a2efab846ab">according to</a>&nbsp;<em>Forbes’</em>&nbsp;calculations.</p>



<h3 class="wp-block-heading" id="h-contra">CONTRA</h3>



<p>Josh Kroenke, a director at the club, spoke at an Arsenal fans’ forum last week where he apologized to angry supporters for Arsenal’s involvement in the breakaway European Soccer League—which the club has since withdrawn from. But despite demands for them to do so, Kroenke insisted that his family was not looking to sell the club. “When are we going to sell? I am not willing to answer that question because we have no intention of selling,” he said.</p>



<h3 class="wp-block-heading" id="h-key-background">KEY BACKGROUND</h3>



<p>Last week, a group of Europe’s twelve biggest soccer clubs announced their plans to start a breakaway European Super League. Soccer fans across Europe—including fans of the clubs involved in the planned competition—<a href="https://www.forbes.com/sites/daviddawkins/2021/04/20/billionaire-roman-abramovich-pulls-chelsea-out-of-super-league/?sh=47b5928a1a7a">rose up in revolt</a>&nbsp;against the plan. The most vocal opposition came from fans of the six English clubs who had signed up for the league, including Arsenal. The planned league&nbsp;<a href="https://www.forbes.com/sites/roberthart/2021/04/21/shares-tumble-as-europes-soccer-super-league-crumbles-amid-widespread-outrage/?sh=4cf604e13a01">unraveled</a>&nbsp;just 48 hours after it was announced as the six founding English clubs announced their exit following the fan revolt and legislative threats from British Prime Minister Boris Johnson. Fans have continued to denounce the team owners for their involvement in formulating this competition with most of the wrath being directed at American owners of Arsenal, Manchester United and Liverpool. #KroenkeOut was trending on Twitter last week as fans demanded Kroenke divest his ownership of Arsenal. In an&nbsp;<a href="https://www.telegraph.co.uk/football/2021/04/24/thierry-henry-speaks-arsenal-protests-fans-will-decide-future/" target="_blank" rel="noreferrer noopener">interview</a>&nbsp;with the&nbsp;<em>Telegraph</em>&nbsp;last week, Theirry Henry—Arsenal’s all-time top goalscorer—criticized Stan Kroenke and the KSE and said he doesn&#8217;t recognize his club anymore after their involvement in the Super League fiasco. Henry, however, made no mention of his involvement in Ek’s bid at the time.</p>



<h3 class="wp-block-heading" id="h-tangent">TANGENT</h3>



<p>Arsenal owner Stanley Kroenke built a fortune in real estate—much of it from shopping plazas near Walmart stores—and is&nbsp;<a href="https://www.forbes.com/profile/stanley-kroenke/?sh=48321581742c">worth</a>&nbsp;$8.2 billion, according to&nbsp;<em>Forbes</em>. Kroenke runs a global sports empire that also includes the NFL team Los Angeles Rams and the NBA team Denver Nuggets.</p>



<h3 class="wp-block-heading" id="h-further-reading">FURTHER READING</h3>



<p><a href="https://www.telegraph.co.uk/football/2021/04/26/exclusive-spotify-founder-launch-arsenal-takeover-bid-three/" target="_blank" rel="noreferrer noopener">Spotify founder to launch Arsenal takeover bid with three former &#8216;Invincibles&#8217;</a>&nbsp;(The Telegraph)</p>



<p><a href="https://www.forbes.com/sites/sergeiklebnikov/2021/04/23/spotifys-daniel-ek-says-he-would-buy-arsenal-if-billionaire-stan-kroenke-agreed-to-sell/?sh=310146166daf">Spotify’s Daniel Ek Says He Would Buy Arsenal If Billionaire Stan Kroenke Agreed To Sell</a>&nbsp;(Forbes)</p>


Samsung Unveils New Galaxy Note Smart Phone

Spotify’s CEO Is Reportedly Teaming Up With Three Arsenal Legends To Make A Bid For English Soccer Club


<p>With Airbnb filing paperwork for an initial public offering last week, it became the latest of many companies to pursue a confidential IPO, which experts say allows for more flexibility and can be more advantageous than the traditional route of filing an S-1 months ahead of time.</p>



<p><strong>KEY FACTS</strong></p>



<p>The confidential IPO can&nbsp;<a href="https://www.wyattresearch.com/article/confidential-ipos/" target="_blank" rel="noreferrer noopener">trace its origins</a>&nbsp;back to President Barack Obama’s 2012 JOBS Act, which allowed companies with less than $1 billion in annual revenue to file S-1 IPO paperwork confidentially.</p>



<p>In June 2017, that $1 billion cap was lifted,&nbsp;<a href="https://www.usatoday.com/story/money/2017/06/30/sec-allow-confidential-ipo-registration-filings/442539001/" target="_blank" rel="noreferrer noopener">allowing all companies</a>&nbsp;to leverage the confidential IPO when attempting to go public, which proved to be a very popular option in the following years.</p>



<p>Companies like Uber and Lyft are the “two posterchildren for using this strategy,” as well as others like Spotify, Slack and Palantir, says Sandeep Dahiya, associate professor of entrepreneurship at Georgetown University’s McDonough School of Business.</p>



<p>“The biggest advantage of confidential filings is withholding information from competitors for a few months, compared to a traditional filing that everyone could see,” explains Jay Ritter, a finance professor at the University of Florida who is known as “Mr. IPO” for his work on initial public offerings.</p>



<p>“The flexibility of timing and price range fluidity is a huge part of it—and even more so given the underlying volatility in the stock market today,” says Dayiha.&nbsp;</p>



<p>“Think of it as playing poker with the market: If companies pursue a traditional IPO, the market can deal them a very different hand in the 90 to 120 days leading up to when they’re scheduled to go public,” he adds.</p>



<p>If a company does decide to go ahead with an IPO after a confidential filing, they are required to file a public S-1 form just three weeks beforehand (rather than months ahead), but that still gives investors more than enough time to evaluate financials, says Ritter.</p>



<p><strong>CRUCIAL QUOTE</strong></p>



<p>“With a traditional IPO, once you file paperwork and the train has left the station, it’s hard to stop it,” says Dahiya. “That’s the beauty of a confidential IPO—there’s no set date and more flexibility.”</p>



<p><strong>BIG NUMBER</strong></p>



<p>So far this year, the average first day return for an IPO is 36%—the highest level since 2000, according to Ritter. “We’re on pace for not only the highest average first day return but also more doubling in price of any year since 1999 and 2000,” he adds.</p>



<p><strong>WHAT TO WATCH FOR</strong></p>



<p>Home sharing giant Airbnb is one of the most recent&nbsp;<a href="https://www.forbes.com/sites/sergeiklebnikov/2020/08/19/airbnb-confidentially-files-ipo-paperwork/">high-profile examples</a>&nbsp;of a company pursuing the confidential filing route. By doing so, the company did not have to disclose any financial information or specify how many shares would be offered in its IPO—giving it far more flexibility than in a traditional S-1 filing. “Covid-19 was just brutal for the hospitality industry, so the fact that Airbnb feels like it can have decent enough performance I think is very encouraging,” says Dahiya. Meanwhile, it has also been&nbsp;<a href="https://www.cnbc.com/2020/07/22/bill-ackman-and-tontine-holdings-rewrite-the-terms-for-spacs.html" target="_blank" rel="noreferrer noopener">widely reported</a>&nbsp;that Airbnb might be in talks with billionaire investor Bill Ackman’s special-purpose acquisition company (SPAC) about a possible reverse merger. “That’s certainly a plausible scenario,” says Ritter, adding, “it makes sense for Airbnb to pursue a dual track strategy to improve their bargaining position both with Ackman and with Goldman Sachs and Morgan Stanley (the underwriters for its IPO) to play them off each other.”</p>



<p><strong>KEY BACKGROUND</strong></p>



<p>While IPOs were at a virtual standstill for much of the first half of 2020 because of the coronavirus pandemic, Airbnb is the latest to join a rush of companies going public amid the stock market’s rebound from its coronavirus recession low point in March. Among those who have successfully done so are music label Warner Music Group and insurtech startup Lemonade.</p>



<p><strong>FURTHER READING</strong></p>



<p><a href="https://www.forbes.com/sites/sergeiklebnikov/2020/08/19/airbnb-confidentially-files-ipo-paperwork/">Airbnb Confidentially Files IPO Paperwork</a> <em>(Forbes)</em></p>



<p><em>-Sergei Klebnikov,Forbes Staff</em></p>


Tag: spotify

FORBES AFRICA SOCIAL MEDIA