Spotify's music industry liaison Troy Carter to depart

(Reuters) - Troy Carter, who acted as a bridge between Sweden-based Spotify Technology SA and the recorded music industry, will leave the company in early September but remain in an advisory role, Spotify said on Monday.

FILE PHOTO: The Spotify logo is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., May 3, 2018. REUTERS/Brendan McDermid/File Photo

Carter was a music industry veteran who had previously helped manage artists such as Lady Gaga and John Legend. In 2016, he became Spotify’s global head of creator services.

In that role, he helped the Swedish company allay concerns from artists over how they could gain a following and make money on Spotify’s streaming music platform, which has thinner margins than the traditional record business.

“I came to this company to help bridge the gap between Spotify and the creative community,” Carter said in a prepared statement. “Over time, that goal evolved from fixing a challenge to building a global team focused on changing the game for artists around the world, partnering with them to help bring their creative visions to life in new and innovative ways.”

Variety earlier reported Carter’s departure. The magazine also reported that Carter had been upset at a Spotify policy put in place in May that demoted the prominence of some artists after they were accused of what the company called “hateful conduct.”

The policy affected artists such as singer R. Kelly and rapper XXXTentacion. Last month, Spotify narrowed the policy, keeping a ban on songs “whose principal purpose is to incite hatred or violence” but removing terms related to an artist’s conduct.

Spotify did not respond to a question about whether Carter’s departure was related to the policy.

In a statement, Spotify Chief Executive Daniel Ek said when Carter “joined our team, there was skepticism from the artist community on streaming overall. Troy has been instrumental in changing that perception and his efforts to establish true partnerships across the industry will be felt for years to come.”

Spotify shares closed down 5 percent at $ 176.79.

Reporting by Stephen Nellis; Editing by Chris Reese

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Tech

Apple Music appoints new head, hits 48 million subscribers

(Reuters) - Apple Inc on Wednesday appointed a new executive to oversee its Apple Music streaming business and hit 48 million subscribers, the company said.

Apple said it had appointed Oliver Schusser as vice president of Apple Music and international content. Schusser, who joined Apple 14 years ago, will report directly to Apple senior vice president Eddy Cue and will also oversee Apple’s services outside the United States, including the App Store and iTunes.

Apple’s top streaming music rival Spotify Technology SA has 71 million so-called premium subscribers, a figure that includes users who have given the company a credit card number for a free trial. Spotify became a public company earlier this month after holding a so-called direct listing on the New York Stock Exchange.

On a comparable basis, the Apple Music service has 48 million subscribers, 40 million of whom are paying subscribers and 8 million of whom are on a free trial, Apple said. Both firms charge $ 9.99 a month for streaming music but provide discounts for student and family plans.

Variety magazine earlier reported the new subscriber figures and Schusser’s promotion. He previously built up Apple’s services businesses outside the U.S. in 155 markets, including China, Japan and Latin America, Apple said.

Apple’s services business, which includes Apple Music, the App Store and iCloud, is becoming increasingly important to the Apple’s financial outlook because the smart phone market has matured and iPhone sales growth has slowed. In its most recent quarter, Apple’s services business grew 18 percent to $ 8.4 billion, missing analyst expectations of $ 8.6 billion.

(This version of the story corrects paragraph 1 to Wednesday instead of Thursday)

Reporting by Stephen Nellis; Editing by Bernadette Baum

Tech

Apple in talks to acquire music identification app Shazam: source

SAN FRANCISCO (Reuters) - Apple Inc (AAPL.O) is in talks to acquire Shazam Entertainment Ltd, whose software helps users identify songs by pointing their phone at an audio source, according to a person familiar with the situation.

FILE PHOTO - A man looks at the screen of his mobile phone in front of an Apple logo outside its store in Shanghai, China July 30, 2017. REUTERS/Aly Song

Shazam’s smartphone app is already tightly integrated with Apple’s Siri digital assistant. Users of Apple’s iPhone with the Shazam app installed can say: “Hey Siri, what’s that song?” and the app will identify it. But Shazam has other features, such as the ability to identify television shows, that do not yet work with Siri.

Tech news website TechCrunch reported the talks earlier, writing that Apple could pay about $ 400 million for Shazam and that a deal could be signed as early as next week.

Shazam did not respond to a request for comment.

Privately-held, UK-based Shazam has raised $ 143 million from DN Capital Limited, Institutional Venture Partners, and Kleiner Perkins Caufield & Byers, among others, over its 18-year history, according to PitchBook, a firm that tracks private venture investments.

The price TechCrunch reported would fall far below Shazam’s most recent $ 1 billion valuation reported by PitchBook.

An acquisition of Shazam could help bolster Apple’s music efforts by making it easier for users to find songs and add them to playlists in its Apple Music service. As of mid-2017, Apple Music had 27 million subscribers, behind rival music streaming service Spotify’s 60 million users.

Reporting by Stephen Nellis, Editing by Rosalba O"Brien

Our Standards:The Thomson Reuters Trust Principles.

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