In The Know: SoStereo's Weekly Music News Summary July 27, 2018

SoStereo's weekly music news summary with Disney & Fox making the deal happen, Spotify recommending festivals, Facebook having a bad day and more.
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Spotify Partners With Festicket To Help Discover Your Favorite Festivals:

Data is king, but actually using to gain useful insights is what separates many companies from the rest. In music that holds true as well. Spotify is partnering with UK-based online booking platform Festicket to use Spotify’s mountains of data on its consumers. If a user pairs the two apps, Festicket will pull data from Spotify and give you a recommendation of 10 upcoming festivals they think match your music tastes. It does more than that, allowing you to buy tickets and book travel, so it won’t just be festivals in your backyard.

Read more here.

YouTube opens Merchadise Sales to More Creators:

In its July creator letter, YouTube unveiled several updates that will be useful to musicians and other creators. One major one was the lowering of the threshold to sell merchandise for US-based channels through YouTube from 100,000 to 10,000. It is expanding its partners beyond Teespring as well. YouTube will use Famebit more, a company acquired by Google in 2016, which will help users shop for products, apps or tickets directly from the creator watch page through a new feature. Channels with over 100,000 subs will be eligible to have channel memberships where users can pay $4.99 a month and get unique badges, emojis and content. They are looking to expand this.

Facebook Stock Plummets On Thursday, July 26, Losing 20% of Value:

As many know who follow financial news, Facebook’s stock fell 19% on Thursday, July 26, wiping out about $120 billion in value. The main concern was that user growth and revenue did not live up to expectations. The company’s margins are incredibly high and they may shrink as it invests more and makes changes to privacy and security, according to Facebook’s chief financial officer, David Wehner.

Some analysts believe the selloff may have been unwarranted, but they could be looking for a financial excuse to sell off after the mismanagement of various scandals and potential looming government crackdowns on both side of the pond. It’s stock had been steadily rising since the Cambridge Analytica scandal broke, so the market still had faith in its market power, but it took a historic tumble yesterday.

Read more here.

Spotify Hits 180 Million Users But Is Still Very Unprofitable:

In its Q2 financial report, Spotify reported that it has hit 180 million monthly active users, 83 million of them are premium users, which a 40 percent increase year-on-year. They project to be at 193 million by the end of the next quarter. However the company still is not getting closer to turning a profit, which is not that surprising for tech. It posted net loses of €394 million ($461.4 million), more than twice the €188 million ($220 million) that it lost in the same period in 2017 according to Rolling Stone. 71 percent of its users are in Europe and North America and 20 percent are in Latin America. This could be a sign of optimism that there is a lot of room for growth in the rest of the world or they struggle to break into African and Asian markets. They face competition from Apple Music & Amazon, while Tencent Music is readying an IPO soon.

Disney & Fox Approve Acquisition Deal:

Disney and Fox have approved their $71.3 deal that would give Disney the bulk of the Fox empire and change the entertainment landscape as we know it. The deal would be subject to approval in more than a dozen countries around the world where the companies operate, but the shareholder vote ends a more than six month bidding process between Comcast and Disney. American regulators approved the deal already, but said that Disney must divest ESPN and the 22 regional sports networks including YES. Fox will get 20th Century Fox film and TV studio, entertainment cable networks and international assets. New Fox will be created, which will include Fox Broadcasting Co. Fox News, Fox’s TV stations, Fox Sports and various newspapers.

Read more here.

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