Spotify has lost over $2 billion in value after Neil Young’s removal of his music catalogue. Shares have fallen 6% over the last three days.
Spotify is losing a good chunk of change in its market capitalization this week. From January 26 through January 28, the streaming giant has lost $2.1 billion in value, with shares dropping 6%. This is due to Neil Young’s very public letter addressing his concerns regarding the popular podcast, “The Joe Rogan Experience.”
“I am doing this because Spotify is spreading fake information about vaccines — potentially causing death to those who believe the disinformation being spread by them,” Young writes.
The rocker gave Spotify an ultimatum: “They can have Rogan or Young. Not both.” With Spotify not addressing Young’s concerns, he decided to go ahead and remove his music catalogue from the platform.
Now, investors are concerned that a waterfall effect will occur. With Joni Mitchell following Young’s lead and removing her catalogue as well, there is a possibility that more artists will do the same. Hashtags like #CancelSpotify and #DeleteSpotify have been trending on social media all week. Investors are concerned about users switching platforms.
While Spotify’s stock increased slightly last night at $172.98/share, there is no telling what will happen this week.
Neil Young’s Criticism of Spotify
Neil Young is “doubling down” on his criticisms of Spotify. Now partnering with SiriusXM, Apple Music, and Amazon to share his music with fans, the rocker is encouraging listeners to try a “better” service.
“Amazon, Apple Music and Qobuz deliver up to 100% of the music today and it sounds a lot better than the s****y, degraded and neutered sound of Spotify,” Young says. “If you support Spotify, you are destroying an art form. Business over art. Spotify plays the artists’ music at 5% of its quality and charges you like it was the real thing.”
He also criticizes the little percentage of revenue that goes towards the artists. Young says that there are better ways to support the arts.
“Switch to one of the alternatives, companies that support the arts. “Real sound is available there… You just have to leave Spotify and go to a place that truly cares about music quality.”
This is exactly what the rocker is doing. SiriusXM is bringing “Neil Young Radio” back to the airwaves with some special surprises. Young is also promoting Amazon Music’s new “four-months free” promotion. Even Apple Music is getting in on the action, sharing a playlist of the artist’s music on their homepage.
Will Spotify write any sort of statement regarding the situation? We will keep our Outsiders updated as more information becomes available. Follow us on social media and let us know your thoughts.