Spotify worth $3 billion without actually making any money

Spotify worth $3 billion without actually making any money

Because the Wall Street Journal has one of those annoying paywalls in place, Stereogum and FACT have stepped in to let us know that Spotify is being valued at a mindboggling $3 billion. Yes, dollars, and that’s up from an estimated $1 billion dollar valuation last year. With these astronomical overestimates, Spotify is making the rounds with its hat out, looking to collect more than $100 million from a variety of investors, including the nice, reliable guys at Goldman Sachs. Don’t ever say Wall Street bankers don’t know what they’re doing, folks.

Why is it so surprising that a company that gives away product for free in most instances is valued so highly (other than the whole giving things away for free thing)? Well, it seems that in the last two years Spotify has spent any revenue it earned from converting free listeners to paid subscribers on sales (advertising and royalties), and then they spent an enormous amount of non-existent capital on top of that to actually pay their employees and cover overhead costs.

While the service is incredibly popular in Europe and the US, with a huge share of the streaming music market, it’s not great at getting people to pay, and advertising is apparently not footing the bill (most likely because spots traded for royalty payments owed, instead of paid for outright). Essentially, the money they’re raising from investors is being used to keep the company afloat. No real return on investment is being realized here, so if you’re lucky enough to have ‘investment income,’ make sure to ask your banker if your money is going to a service that has no real likelihood of ever making any money to pay you back. Spotify is awesome and is a great way for people to explore and experiment with music, but like much about the music industry these days, the business model is not sustainable.

• Spotify:

RIP: Pete Namlook, ambient/electronic producer

From Resident Advisor:

Esteemed German producer Pete Namlook has died of as-yet unknown causes.

The man born Peter Kuhlmann (“Namlook” is his name pronounced backwards) was an incredibly prolific artist from the ’90s on, releasing some 130 albums over the course of his career. These included numerous collaborations with artists like Richie Hawtin, Uwe Schmidt (as Atom Hart), Biosphere and Move D among many others. He also ran his own label, FAX +49-69/450464 (often known simply as Fax), which released more than 100 CDs and records in its first year of operation. Working on his own, Kuhlmann’s style was heavily influenced by Germany’s kosmische tradition and artists like Brian Eno, as well as classical and Eastern music.

Kuhlmann’s daughter Fabia released this brief statement to RA earlier today: “It is with much grief that we announce the passing of Peter Kuhlmann, AKA Pete Namlook. We are still shocked and are working on an official announcement that will follow soon to bring clarity to our minds. As word spreads on the internet more and more we just want to make clear that he died peacefully from as yet unspecified causes on 8th November 2012. We will announce more details as and when they surface.”

Kuhlmann was 51 years old. He was an inspiration to countless producers around the world, and his death comes as a big loss not only to those who knew or worked with him, but to the electronic music community as a whole. Our thoughts are with his family and everyone who was close to him.

• Pete Namlook:

of Montreal launch Kickstarter campaign to finish tour documentary (but completely overlook the opportunity to offer skeletal lamps, controllerspheres, and false priest snuggies as donation incentives)

Stop the presses! Oh wait, what? They were already stopped because people don’t buy newspapers anymore? Well, in that case: Get out a sharpie and write this down on some rolls of toilet paper! Georgia-based purveyors of craze-balls hyperpsych (#crazeballshyperpsych) have gone and launched a Kickstarter campaign to help fund the expenses (e.g. digitizing of tapes, purchasing of hard drives, payment of camera crews, solicitation of… things that require solicitation) relating to the completion of a feature-length band documentary.

The thing is entitled Song Dynasties and has been in the works since 2007 when the band hired director Craig Zobel (Compliance, Great World of Sound) to film a couple of back-to-back L.A. shows after the release of that record everyone loves, Hissing Fauna, Are You the Destroyer?. Apparently geeked on how fun the process was, Kevin and co. hired filmmaker Jason Miller (a.k.a. not this guy) to follow them around on their batshit Skeletal Lamping tour the following fall and have been amassing “hundreds of hours of footage” since then, including all the backstage shenanigans, studio wankery, tour bus doldrums, and festival festivity your little capacity for vicarious living can handle. They even dug up some mid-90s footage from the Elephant 6 days to give a more comprehensive scope to their story… just like you wanted them to do!

The campaign, which ends December 12, still has a ways to go to reach its goal of $75,000, but the band has a tasty menu of donation rewards lined up to make it worth your while, including album downloads, an exclusive vinyl release called “Young Froth / Taypiss” (apparently featuring extremely rare Montreal recordings); a deluxe, hand-numbered DVD of the documentary, props used in classic of Montreal music videos, and like 1,001 other things, the most embarrassing of which being the opportunity to dance up onstage at an of Montreal show in a wacky costume selected by the band! (The top prize, at $2,500, is unfortunately sold out already, but
included the opportunity for one lucky fan to get flown out to and put up in Athens [Georgia] for a screening of the film with the band. And I totally officially dare whoever that fan is to tell the band to their faces that they think it sucks.)

If successful, the film is promised to be ready by March. In the meantime, you’ll just have to entertain yourself by watching the documentary trailer below, viewing the band’ current tourdates, or listening to the Spacehog song “In the Meantime.”

11.28.12 - Miami, FL - The Stage
11.29.12 - Tallahassee, FL - The Moon
11.30.12 - Orlando, FL - The Plaza
12.01.12 - Mobile, AL - Alabama Music Box
12.02.12 - New Orleans, LA - Howlin’ Wolf
12.03.12 - Houston, TX - Warehouse Live
12.04.12 - Austin, TX - Mohawk
12.05.12 - Dallas, TX - Granada Theater
12.06.12 - Oklahoma City, OK - ACM @ UCO Performance Lab
12.07.12 - Omaha,NE - Slowdown
12.08.12 - Milwaukee, WI - Turner Hall
12.09.12 - Chicago, IL - Metro
12.10.12 - Cleveland, OH - Beachland Ballroom
12.11.12 - New York, NY - Webster Hall
12.12.12 - Boston, MA - Paradise
12.13.12 - Philadelphia, PA - The Trocadero
12.14.12 - Washington, DC - 9:30 Club
12.15.12 - Carrboro, NC - Cat’s Cradle

• of Montreal:
• Polyvinyl:

[Photo: Perry Julien]

RIP: Jon Ashline of The Screamin’ Mee-Mees

From The Screamin’ Mee-Mees’ Facebook page:

R.I.P Jon Ashline - The drumming, (most of the time) lead vocaling and sometimes guitaring half of the Screamin’ Mee-Mees. A very sad day indeed. Drink an ice cold can of Busch or Stag beer, blast your Mee-Mees records and shed a tear for dear ole’ Ashline.

• The Screamin’ Mee-Mees:

Matmos expecting! New album out in February on Thrill Jockey

Word first passed through the halls of TMT back in July that Matmos had started running with a new crowd (Chicago-based label Thrill Jockey), and that as a result, a certain surprise was on the horizon. Now that a bit of time has passed and the duo of Drew Daniel and MC Schmidt is starting to show, the cat is out of the bag and the delivery date has been announced. Scheduled for February 22 of next year, the couple is planning on a natural birth for their lucky 10th, and they’ve already christened it The Marriage of Two Minds. Just a handful more and they’ll be eligible for their own show on TLC.

FACT is reporting that this addition to the Daniel-Schmidt clan is “part record, part experiment,” as was demonstrated on their Ganzfield EP earlier this year. The pair took audience responses to white noise and then used those reactions as the starting points for their found sound compositions. Think of it as an in-vitro inspiration.

The Marriage of Two Minds tracklisting:

01. You
02. Very Large Green Triangles
03. Mental Radio
04. Ross Transcript
05. Teen Paranormal Romance
06. Tunnel
07. In Search of a Lost Faculty
08. Aetheric Vehicle
09. ESP

• Matmos:
• Thrill Jockey:

The Flaming Lips get together with some new fwends to remake an entire King Crimson record. Okay, but what are they going to do after that?

Guys, I think the brown acid-laced orange-flavored Fanta is kicking in. Everything’s starting to look really weird. I fucking swear that I just googled Flaming Lips and got a psychotropic news story about the band partnering with Bon Iver, Ke$ha, Chris Martin, Nick Cave, and possibly (secretly) Nick Cage for a double LP orgasmaganza called The Flaming Lips and Heady Fwends that they unleashed upon the world on something called “Record Store Day.” Oh my god, so messed UP!

Whoa, now here comes another music news-related hallucination (man, what are the odds?)! This one’s via Consequence of Sound that’s saying some shit about Coyne and his boys recording and releasing a “complete reworking” of King Crimson’s 1969 debut album In the Court of the Crimson King. I’m seeing a bunch of crazy colors right now, and words are jumping off the screen and speaking themselves and stuff, but still, I’m pretty sure that The Lips’ version is called Playing Hide and Seek with the Ghosts of Dawn and features collaborations with New Fumes, Stardeath and White Dwarfs, Linear Downfall, and Spaceface… but then again, all of that information sounds pretty made up if you read it back again, so you probably shouldn’t be listening to me at all right now.

Whoa, now comes the really weird part. According to The Future Heart, a limited edition multi-color vinyl of the album is on sale TODAY, sold at Dallas’ Good Records. That’s, like, not even possible! It’s also streaming right now on the band’s Satellite Heart Radio website (when did they get all these websites?) Either way, I’m going to check out New Fumes and Flaming Lips’ non-album cover of “Moonchild” below while I ride this out. If I start taking all my clothes off and doing the worm, please don’t try to interfere. I WILL eat your tongue and eyeballs.

Playing Hide and Seek with the Ghosts of Dawn:

01. Linear Downfall – “21st Century Schizoid Man”
02. New Fumes – “I Talk to the Wind”
03. Linear Downfall, Spaceface, Stardeath and White Dwarfs, and New Fumes with The Flaming Lips – “Epitaph”
04. Spaceface – “Moonchild”
05. Stardeath and White Dwarfs – “In the Court of the Crimson King”

• The Flaming Lips: