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Spotify CEO: Some 2022 Investments Were A Mistake

Industry professionals, investors, and listeners alike are wondering the same thing: Were Spotify’s substantial investments in 2022 a mistake? 

Maddy Troy

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Spotify reported its Q4 2022 earnings this morning revealing some financial growth points in the wake of the recent layoffs that cut 6 percent of Spotify’s staff. Most notably, the revenues from subscriptions and ads were both up double digits year over year. 

Where is the disconnect happening and why?

Industry professionals, investors, and listeners alike are wondering the same thing: Were Spotify’s substantial investments in 2022 a mistake? 

On this morning’s call, Spotify CEO Daniel Ek answered, “No… and yes.”

Ek explained that the year 2022 was a mixed bag for Spotify. User growth is way up, new app features made Spotify stand out against competitors, and long-term investments are already having a short-term impact. 

On the flip side, he just laid off six percent of his staff. Ek noted he may have over-invested in some areas relative to market uncertainty in 2022. 

Spotify reached 200 million paid subscribers, making it the first music streaming service to reach that number. In the coming quarter, they plan to reach the goal of 500 million monthly users. Jacob Kastrenakes of The Verge reported on the call this morning;

“Ek reiterated again and again that the company would be reorienting around “speed and efficiency.” The reorg? Speed and efficiency. The goal for 2023? Speed and efficiency. The biggest thing holding Spotify back? Speed and efficiency. (I counted 12 “efficiency” drops between Ek and CFO Paul Vogel just in my notes from the call.)” 

In the wake of this, the CEO said he requires more help at the top of the company. Ek is reframing the top structure at Spotify to work more closely with Alex Norstrom, Spotify’s chief business officer, and Gustav Söderström, Spotify’s chief product officer, Ek said, “materially [this will ] mean we’ll have more brains thinking about these things … to make decisions faster because that’s honestly one of the biggest blockers.”

There are many variables at play for Spotify. Some elements of their business model are working incredibly well, and some need restructuring and attention from more “brains”, as Ek says. The progression of Spotify will stay on our radar in 2023.

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Media Business

49th Annual Gracie Awards Winners Announced

The winners of the awards will be celebrated at the foundation’s annual gala on Tuesday, May 21st at the Beverly Wilshire, a Four Seasons Hotel, in Los Angeles.

Barrett News Media

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The Alliance for Women in Media Foundation has released the winners of its 49th annual Gracie Awards, with radio, television, and digital media outlets well represented in the honorees.

“As Women’s History Month draws to a close, we honor the remarkable women storytellers whose courage and resilience continue to inspire us. Their stories, strengths, and influence are actively shaping our present and future,” said Alliance for Women in Media Foundation President Becky Brooks. “The impact of women is undeniable, and we look forward to celebrating these powerful contributions and achievements at the upcoming Gracie Awards.”

In the radio sector, several prominent women took home major awards.

CBS News Radio host Allison Keyes was the winner of the Nationally Syndicated Weekend News host radio award. The network’s Jill on Money took the award for best talk show.

ABC News Radio took home the award for Best National Crisis Coverage/Breaking news for its Foreign Crisis Coverage. Network host Michelle Franzen won the award for Outstanding News Anchor.

NPR took home several awards. It won the Public Affairs category with its “Battle of Bamber Bridge” coverage, alongside its breaking news coverage of the “Historica UAW Strike of 2023”, News Feature in conjunction with WBUR, Nationally Syndicated Non-commercial Reporter/Correspondent (Katia Riddle), best nationally syndicated non-commercial series (“On The Ground in Iran” for All Things Considered), and best interview feature (“One Couple’s Fight to Cure ALS” for All Things Considered).

iHeartMedia won the award for best news feature for its “Black, Autistic, and Safe” story.

In local radio, 77 WABC host Rita Cosby took home the award for best Local Radio Interview Feature for her sitdown with former New York Governor Andrew Cuomo. Meanwhile, the station’s Cindy Adams won the award for best Local non-morning drive weekend show for the large/major market category.

Seattle’s KIRO Newsradio won the award for local Hard News Feature for its “Facing Fentanyl” story. It also won the award for Soft News Feature for a report on the work being done for students at Kent-Meridian High School.

Lisa Dent of WGN in Chicago took home the honors for best Non-Morning Drive Talk/Personality Host in a Large/Major Market.

WCBS Newsradio 880 producer Lisa Tschernkowitsch took home the Best Local Radio Producer award for her work on Newsline with Brigitte Quinn.

KCBS in San Francisco won the local radio award for Best Crisis Coverage/Breaking News for its reporting on the wildfires in Maui.

The news television sector was well represented in the awards.

CNN won an award for Best National Hard News feature for its coverage of a Hamas attack at an Israeli Morgue. The network’s Jomana Karadsheh took home the ward for National Reporter/Correspondent.

ABC World News Tonight with David Muir Producer Esther Castillejo won for Best Producer of a National Newscast.

Bloomberg took home the honor for Best National Investigative Feature for its “Run For Your Life” segment during Bloomberg Investigates.

There was crossover from the News Television and Radio worlds in the digital sector, as well.

Audacy Podcasts took home the award for Lifestyle Podcast co-host/ensemble for We Can Do Hard Things, hosted by Glennon Doyle, Abby Wambach, and Amanda Doyle.

Kayla Whitworth of ABC News won the award for best National News Podcast Host for her The King Road Killings podcast.

CNN’s Ladan Anoushfar won the award for best National Online News Producer for the As Equals series.

The winners of the 49th annual Gracie Awards will be celebrated at the foundation’s annual gala on Tuesday, May 21st at the Beverly Wilshire, a Four Seasons Hotel, in Los Angeles.

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Media Business

Audacy Podcasts to Debut Series on Cultural Impact of MTV

“MTV is still on the air in 2024, and it’s still profitable, but my nieces and nephews know it as a logo on an Urban Outfitters t-shirt. I wanted to know what happened, and where the spirit of MTV exists now.”

Barrett News Media

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A photo of the Who Killed the Video Star? The Story of MTV logo

Audacy Podcasts is set to release a new podcast series called Who Killed the Video Star? The Story of MTV.

The eight-part series will be hosted by former MTV VJ and Esquire Editor-At-Large Dave Holmes. The first two episodes released Wednesday, with new episodes releasing weekly through Wednesday, May 8th.

“In the ‘80s and ‘90s, MTV was a window into an alternate universe, one full of music and art and style and sex, that commanded the attention of my whole generation. At the turn of the millennium, I climbed through that window and worked there, and found myself surrounded with the smartest, hardest-working people on Earth, people who loved music and pop culture the way I did,” said Dave Homles.

“MTV is still on the air in 2024, and it’s still profitable, but my nieces and nephews know it as a logo on an Urban Outfitters t-shirt. I wanted to know what happened, and where the spirit of MTV exists now. As I gathered the story, in real-time, a few other bulletproof media brands– Vice, Pitchfork, Sports Illustrated, MTV News itself– went out of business. The story of MTV is a fascinating one in its own right, but it’s also turned out to be, in microcosm, the story of media in 2024.”

“Dave’s insider perspective makes him the perfect person to dissect the trajectory of the cultural phenomenon that is MTV, “ said Jenna Weiss-Berman, EVP, Podcasts, Audacy. “This series is a treat for listeners across all the generations who made MTV a part of their lives.” 

Guests on the show include former VJs “Downtown” Julie Brown,  Damien Fahey, and Kevin Seal. Additionally, former MTV News reporters like Gideon Yago, Chris Connelly, and Suchin Pak will also be featured.

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Media Business

Salem Media Group Sees Drop in 2023 Broadcast Revenue, Slight Increase in Digital

Digital revenue at the company was up 4.1% with increases from the Salem Podcast Network, Salem News Channel, and digital marketing.

Barrett News Media

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A photo of the Salem Media Group logo

Salem Media Group has released its 2023 financial results, and the company saw a slight dip in broadcast revenue during the year.

Overall, the company reported revenue had declined $7.6 million compared to 2022, representing a drop of 3.7%. Nearly half of that figure was political advertising, as that sector dropped from $5.9 million to $2.3 million, a loss of $3.6 million.

However, digital revenue at the company was up 4.1% with increases from the Salem Podcast Network, Salem News Channel, and digital marketing.

In total, the company reported a rise in operating expenses during the year, ultimately reporting a net loss of $43.3 million in 2023 compared to the $3.2 million it lost in 2022.

Salem Media Group instituted several measures throughout 2023 to mitigate the losses, including selling its publishing and church products divisions. It also sold its former California headquarters for more than $6 million, while agreeing to lease the building for $500,000 per year.

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