The current changes are the result of a new $10M investment round at Qobuz, which may or may not be a good thing, depending on how you look at it.
The previous management team has been largely replaced, i think it’s safe to assume the investors weren’t entirely happy with how things were going.
“The French service closed its last fiscal year with over 45% growth”
This is a bad result, Qobuz only has around 200K paying subscribers and $12M yearly revenue, so a 45% growth is only about 100K extra subscribers.
Spotify 160M subscribers ($10.8B revenue)
Youtube Music 50M subscribers
Amazon Music 60M subscribers
Apple Music 80M subscribers
Tidal 3-4M subscribers
etc.
Press report:
Qobuz is setting up a new management team and launching a recruitment plan that is unprecedented in the company’s history.
Internationally, for Qobuz’ Paris HQ, Georges Fornay, the executive behind the development and success of the PlayStation in French and Swiss territories, has been appointed Deputy CEO.
At his side, Céline Gallon joins Qobuz as Chief People Officer. Finally, Raphaël Awóṣéyìn, who has held the position of Head of Quality Assurance within Qobuz for over a year, is appointed Chief Customer Officer.
On the US side, music veteran Rachel Silton has joined as Acquisition and Marketing Manager. Rachel brings a range of expertise from her roles across the music industry including Marketing Director at NYC Winter Jazzfest & Sound Mind Live, Project Manager at Motema Music and Marketing Consultant for GRAMMY-nominated artists.
Other major recruitments are planned to take place by the end of the year.
“We are very proud of our latest fundraising milestone of 10 million euros, which shows our historical shareholders’ confidence in our model. The end of the year promises to be full of exciting projects for Qobuz. We are also very pleased with the arrival of Georges Fornay, Céline Gallon, and other experienced professionals who are committed to upholding the ambitions of our brand. We are ready to step up our international presence to offer a unique offer to those who do not compromise on musical quality,” declares Denis Thébaud, Chairman and CEO of Qobuz.
If you are familiar with corporate speak, the last paragraph above does not sound good. A company should be proud of their achievements and growth, not of the fact that their investors have not abandoned ship.
Since they have now chosen to compete on price, it seems unavoidable that this will gradually also result in reduced payouts to artists.
I’m hoping to be proven wrong and that Qobuz will succeed without negatively affecting artists, but it seems like a difficult business model to sustain.