The Nasdaq 100 Index fell 0.7%.įor years, robust demand for cloud-computing services has acted as a steady growth driver for both Microsoft and Amazon, which in addition to AI excitement have been riding the wave of a broader rally in technology stocks. Microsoft shares fell 0.8% on Thursday while Amazon slipped 0.3%. “I don’t know why you’d want to be over your skis going into first-quarter prints.” “Given how much they’ve run, the setup for earnings is horrible,” Mortonson said. Trouble is, not much of that is priced into stocks that are up solidly this year, according to Ted Mortonson, a technology strategist at Robert W. And when Microsoft and Amazon report results next week, analysts anticipate the slowest revenue growth for their cloud-computing businesses since the firms started breaking out performance last decade. Once-booming demand for cloud-computing services is slowing as businesses rein in spending amid economic uncertainty. Javice Moved Millions From JPMorgan to Signature Months Before Collapse Tesla Drops Model Y Starting Price Below the Average US Vehicleįox Fired Its Biggest Star Tucker Carlson, Who Badmouthed BossesīRICS Draws Membership Bids From 19 Nations Before SummitĬlarence Thomas’s Billionaire Friend Did Have Business Before the Supreme Court this year may also be masking struggles in a business far more critical to the pair’s bottom lines. "It can’t be that an Ed Sheeran stream is worth exactly the same as a stream of rain falling on the roof," Warner Music Group CEO, Robert Kyncl told Music Business Worldwide earlier this year.(Bloomberg) - The buzz around artificial intelligence that’s helped juice gains for Microsoft Corp. Execs at major record labels have complained that tracks by reputable artists are being assigned the same value as those uploading just noise. White noise has already stirred considerable controversy in the music industry. One white noise podcaster also told Bloomberg that some of his episodes have disappeared without warning.Īpart from a flood of white noise, Spotify has also been dealing with a tsunami of AI-generated music, sometimes with bots artificially inflating its listener count. Meanwhile, users have noticed how some of their white noise podcasts have mysteriously vanished. "The proposal in question did not come to fruition - we continue to have white noise podcasts on our platform," a spokesperson told Bloomberg. Once Spotify started spending time making sense of the data, it concluded that shifting users away from white noise programming could net the company an additional $38 million in profit, according to document obtained by Bloomberg. Spotify makes the most money by pushing customers to its paid music subscriptions, an important revenue stream for a company that relies on razor-thin margins.Īnd the pressure is on, with its ratio of paid-to-free listeners in free fall, according to the company's Q1 earning report. The problem is that white noise isn't very profitable. Some podcasters are making as much as $18,000 a month through ads placed in these episodes of crashing waves or recordings of fans blowing air, Bloomberg reports.Īnd Spotify recently got wind - if you will - of the trend. According to an internal document obtained by Bloomberg, white noise and ambient podcasts are adding up to a stunning 3 million daily consumption hours on the music platform - leading Spotify to wonder if there's a way to direct listeners in a more profitable direction. SssshhhhĪ peculiar type of podcast has found a huge footing on Spotify, amounting to what the platform says totals tens of millions of dollars in lost profit: entire episodes of white noise, seemingly aimed at listeners who are asleep. People are listening to 3 million hours of white noise a day.
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