If you will ask the caterers in Sydney, they will tell you that there is nothing better than listening to music while in the kitchen. Music sets the mood whether it is rock at full blast or ballads during a quiet night. Music can keep the energy going and fuels a creative spirit. Of course, there are also cooks who prefer to work in silence.
It is very likely that you have downloaded Spotify on your mobile phone so that you can listen to music anywhere you are. Last Friday, June 8, the share price of Spotify closed on the New York Stock Exchange at an all time high to push the company’s market cap at more than $30 billion. A market summary courtesy of Google Finance showed how the stocks of Spotify climbed consistently in the last 8 trading days up to $171.48 at the close last week.
Speculations on Wall Street said that Spotify is trying to improve its gross margins by “cutting out” record labels whenever possible. This action reduces the overall percentage of revenues that the platform has to pay out in terms of licensing fees. Analysts are suggesting that Spotify can sign acts to effectively act like a label by itself. However, this idea has not taken into account the power of Spotify’s key suppliers and their reactions.
Meanwhile, a new report from Billboard stated the current approach of Spotify to direct licensing is quite complicated than straight signing. The platform is reportedly providing 6-figure advances to managers and independent artists. Additionally, Spotify is also offering royalty rates equivalent to 50% revenue share per stream.
Fifty percent is definitely lower than the 55% revenue share that labels have received in the past years. However, payment to artists is higher than the net royalty rate which they could achieve from labels and distributors.
Music can certainly enhance the ambience in kitchens. It is assumed that caterers in Sydney are listening to music while they are creating their masterpiece dishes for a corporate event. The same is true for the guests because when there is music, their gustatory experiences are enhanced.