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SoundCloud integrates with Instagram                   
This one kind of snuck under the radar but it is really quite a big deal - especially given the aggressive stance that Spotify has taken recently.

Aside from their recents moves to expand the monetisation side of the service, partnering (if that's the right word) with Facebook to bring Instagram integration to the platform really will make it possible for independent artists to create new ways of promoting themselves by targetting their fanbase more directly. Sharing tracks from their SoundCloud account directly to Instagram Stories could mark a radical shift in the possibilites open to content creators and, given the popularity of SoundCloud in the creative market, could pave the way for a whole new business model. Check out the full story here

Spotify moves into direct upload for artists
Spotify have just announced plans to allow artists to upload music directly to the platform, bypassing the aggregators such as Tunecore, CDBaby, Distrokid etc.
And, in addition, it is going to be a free service! So, in other words, whereas before, in order to access Spotify you had to pay one-off fees or yearly subscriptions to the aggregators, now you can go direct via the Spotify for Artists platform. Sounds great, right? 
I can think of a few downsides to all of this.......

Firstly, how long do we think Spotify will support a free user-upload platform? My guess is not long but once you are hooked in, you'll probably pay to stay. Secondly, this is pretty much a direct challenge to SoundCloud and anyone with their Pro Unlimited account and that's not healthy. Personally, my biggest concern here is that unless artists abandon SoundCloud and the aggregators as alternative routes to market, there is a danger of creating an administrative nightmare for the very people who should be focussed on making great music, not managing multiple digital distribution platforms and if they choose to only use Spotify, where will that leave them in the wider world?

This week we gained a bit more visibility on the numbers and again, on the face of it, it looks pretty good but let's think about what this actually means................ First of all, we have to keep in mind that traditonally Spotify has paid 52% of the calculated value of a stream to the majors who then split that 52% with the artist based on the deal that they have in place (a 50/50 split in the case of most established artists, 80/20 in the labels favour in the case of new signings etc.). The same 52% payment is also made to Indie labels and distributors, so, at first glance, the 50/50 split Spotify now offers on direct upload gives independent artists 2% less than they were getting in the past, BUT............... this does not take into account the +/- 15% commission that distributors charge or the yearly fees otherwise charged by aggregators. The bottom line, therefore, is that independent artists are going to be better off with direct upload and the majors are going to have to rethink there deal structure in the face of direct competition from Spotify itself.

And, in case you are wondering, how come Spotify gets to keep 50% of the calculated value? Well, let's not forget that Spotify has deals with the major PROs to make royalty payments to the rights owners (composers / publishers) and those payments come out of Spotifys 50%. In the past, Spotify was paying percentages out of their remaining 48% share, now they are paying it out of their 50% share. The royalty percentages they pay will not increase but their profit margin has just gone up by 2%. 

All in all, a very positive outlook for independent artists on Spotify, so why am I still sceptical? Well, how does an emerging artist, with no label support, no marketing or promotional support and no other resources to fall back on but themselves grow a big enough fanbase to make a 50/50 deal with Spotify worthwhile? Well, as I have said in the past, getting on Spotify (or iTunes or Amazon or anywhere else online) is relatively easy and straightfoward but that's not the trick -  letting people know that you are there is the real issue and this is where the majors still have the upper hand.



Simon Usiskin makes an impact at DevCom

Flip Managing Director Simon Usiskin made a big impact with his presentation at DevCom. The topic was how to bring the music and game industries closer together and to work to be mutually beneficial. If you missed it and want to know more, drop us line!


Simon speaking at Gamescom

Flip Entertainments Managing Director Simon Usiskin will be a keynote speaker at this years Devcom / Gamescom.

Click here to connect with him to request a meeting


Exclusive partnership with Dynamdeion

Dynamedion and FLIP Entertainment in new exclusive partnership to create the leading full-service music provider for the game industry.

Read the full press release here.


Everspace Volume 2 is released!

 FLIP is proud to announce the release of volume 2 ofthe stunning music from Everspace game by RockFish. Check it out on all major digital platforms


Cannes Lions

As FLIP Entertainment is active in both the music and gaming industries, our team tries to go and attend both music and gaming events around the globe to keep a close dialogue with both industries and, of course, spread the word about the music and gaming gap that we bridge.

This time around, FLIP’s Mehdi Benkirane will be attending Cannes Lions this week to catch up with awesome sync agencies, lifestyle brands, and music publishers from all around the globe. It is Mehdi’s first Cannes Lions so we wish him the best of luck with the week long madness though we’re not that sympathetic as unlike the rest of us, he’ll get to use his summer wardrobe.


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