Junior Sees God; Has Religious Conversion
The clouds parted earlier today and the hand of Jesus came down and touched the head of Junior Bronfman, resulting in a religious conversion not seen since Katie Holmes converted to Scientology to marry Tom Cruise.
On an earnings call last Friday in which he discussed WMG’s widening losses for the quarter, Junior said that he loved Spotify so much that Warner Music just renewed their European deal with the ground breaking service.
Specifically Junior said “I’m happy to report that in October we successfully reached a new agreement with Spotify for Europe. We’re pleased with the new agreement because we’ve long seen great promise in Spotify. We were among the first music companies to license them in Europe in 2008, and today they report more than 10 million users.
The question has always been, how to ensure that free-to-consumer models, which are generally supported by advertising and offer to attract consumers are effective at converting consumers to paid subscriptions? We’re pleased with the new agreement we struck with Spotify for Europe, because the terms more closely align our economics with Spotify enabling artists to be properly compensated while also enabling Spotify to continue to offer its compelling service to consumers.” (Read full transcript here)
Translation: I was able to squeeze a ton of cash out of them.
This comes after months of Junior’s assurances that he would no longer support ad-supported free streaming services like iMeem, even if WMG held equity in them. Equity that, of course, if ever reached any value would never make it to the artists’ pockets along with those massive un-recouped advance payments extracted from dozens of failed start-ups over the years.
So the question for Junior is if he now loves Spotify so much that he is bragging about renewing their deal in Europe, how come they’re not good enough to license in the US?
God works in mysterious ways.