I thought you might find RollingStone article interesting! Why is the streaming giant getting into podcasting, and what does it mean for the record business?
They say if you want the truth, follow the money. So if you want the truth behind the truth, you should probably follow the world’s richest people.
According to Forbes, Len Blavatnik is the 27th-wealthiest individual in the United States, with a net worth of $17.9 billion.
In July 2011, Blavatnik, via his Access Industries, paid $3.3 billion to fully acquire Warner Music Group — the third-biggest “major” in the global music market, and owner of famed labels like Atlantic, Warner Bros. and Asylum.
It was a gamble that’s paid off handsomely. Should you look hard enough in Warner Music Group’s fiscal filings, you’ll spot that Access withdrew $925 million in cash dividends from the company in the first eight months of 2018 — including a whopping $500 million lump sum in August.
It’s been able to do so because, driven by streaming, Warner’s annual revenues have grown by 29 percent since 2012. Plus, the company recently sold its 2 percent stake in Spotify, cashing in $504 million. (Twenty-five percent of this Spotify-shares windfall was subsequently paid to artists, leaving Warner with $378 million.)
The truth behind the truth, then: The music industry, which many wrote off as a dead duck, is now, once again, making exceedingly rich people significantly richer. Ask the guy worth $17.9 billion, and he’ll tell you: We’re officially back in business.
Read the rest of the article here https://www.rollingstone.com/music/music-news/can-podcasts-rescue-spotify-business-model-749970/