SpotifyIts market capitalization has fallen by about $2.1 billion within three days this week, after the folk rocker Neil Young snatch his songs from the audio streaming giant in protest Joe Roganpodcasts spread misinformation.
Shares of Spotify fell 6% from January 26-28. During the same time period, the tech-heavy Nasdaq composite gained 1.7% and the Dow Jones Industrial Average gained 1.1%. .
That comes later Young announced Wednesday that he is asking the company to drop his music, writes that “Spotify has recently become a very dangerous force due to public disinformation and lies about COVID.” He does not name Rogan, but refers to a Open letter from doctors and medical professionals released earlier this month urges Spotify to stop coronavirus-related misconduct on the “Joe Rogan Experience.”
To be sure, Spotify’s stock price has slipped – having plummeted 25% as of January 25, the day before Young’s catalog was pulled from Spotify. Investors have been puzzled by signals that Spotify’s growth may be slowing, especially after Netflix warning about significant cooldown in first quarter subscriber network adds (causing its share price to drop 24%).
Also, it’s worth noting that shares of Spotify were up slightly on Friday, closing up 1% at $172.98 per share, amid a broader bull market. However, that came first Joni Mitchell Announces That She’s Also Removing Her Music From Spotify. “Irresponsible people are spreading lies that are costing people their lives. I stand with Neil Young and the global medical and scientific community on this issue,” wrote the singer-songwriter.
For Spotify investors, the concern is that the artist exodus could snowball in the coming days and lead to a large number of customer cancellations. Hashtags #CancelSpotify, #DeleteSpotify and #ByeSpotify are trending on social media after Young issued an ultimatum and Spotify decided to remove his music.
Rogan, the monopolist multi-year distribution agreement with Spotify for his podcast estimated to be worth more than $100 million, held #1 most listened to podcast on Spotify in 2021, according to the company. His flirt with the right alternate figures and his anti-vax and anti-mask commentary has previously attracted fire from critics – including Dr. Anthony Fauci – but the Rogan controversy has flared to a new level with Neil Young’s objections.
Young on Friday doubled down on his anti-Spotify stance, emphasizes the streamer’s audio quality as “bad, degraded, and disabled” and notice a partnering with Amazon to give new customers four months of free Amazon Music Unlimited with a premium streaming player.
An article in the New York Times last July, titled “Joe Rogan is too big to cancel,” included this detail: “[A]“The notion that Mr Rogan causes any kind of unfortunate executive headache is ludicrous,” said people familiar with the company. ”
At this point, one wonders if Spotify execs are still contesting the notion that Rogan is more of a liability than an asset. The company is expected to report Q4 2021 earnings on February 2 after the market closes.
https://variety.com/2022/digital/news/spotify-2-billion-market-cap-neil-young-joe-rogan-1235166798/ Neil Young-Joe Rogan Dispute: Spotify Market Cap Drops $2 Billion +