Oops!... Spotify did it again

Good morning! (DO NOT) Drop it like it’s hot… Snoop Dogg is one of the final Olympic torchbearers carrying the flame through Paris ahead of the opening ceremony [on Friday](. Today we’re exploring: - Income streams: Spotify’s price hikes saw it break profit records. - Deflated: The air’s coming out of the EV industry’s tires. - Windfall: The British royal family’s finances are turbine-charged. Have feedback for us? Just hit reply - we'd love to hear from you! TOGETHER WITH [Sponsor Logo](   Stairway to heaven Spotify is singing a tune that investors are thoroughly enjoying this morning, with shares in the world’s largest music streaming platform up more than 10% after the company reported a record quarterly profit, continued subscriber growth, and strong guidance for the rest of the year. While there was a lot of noise around Spotify increasing prices for the first time ever last summer, and then again earlier [this year](, premium users weren’t perturbed. Indeed, despite having to cough up more for their music, Spotify’s subscriber numbers were up 12% year-on-year to a record 246 million. The combined effect of higher prices and more subs? Revenue from premium users that was up 21%. That’s of course carried over to the company’s bottom line too, where it’s also still all about music fans who are forking out a monthly fee: per our calculations, Spotify’s premium users accounted for 95% of the company’s gross profit over the last 12 months. Oops!... I did it again Given that this quarter only accounts for up until the end of last month (June 30th), it’s reasonable to assume that the figures mostly reflect just the price hike from last year, while the US price hike in June 2024 has yet to fully wash through for an entire quarter. Many people seem increasingly willing to live with constant advertising interruptions when sitting down to watch something from their favorite streamers (especially if it means the [platforms get considerably cheaper](). Indeed, streamers like Netflix are finding success cutting prices for inflation-weary consumers by offering ad-supported tiers. Music might be different. So far, it seems like watchers might be more price sensitive than music fans: Disney+ actually [lost users]( after its price hike, while Spotify has continued to grow. I guess the question boils down to what is more annoying? An ad interruption during your nightly TV binge, or an ad that breaks up your favorite album? [Read this on the web instead](   Battery low A flurry of headlines this week confirms: the electric vehicle (EV) transition is decelerating. On Monday, Porsche poured cold water on its [transition]( to EVs, saying in a statement that the “transition to electric cars is taking longer than we thought five years ago”. Then, yesterday, General Motors said it would delay [plans]( for its Buick EV and postpone a new electric factory in Michigan, before Tesla revealed a 45% slump in [profits](, facing slower demand (although the company did report significant growth in its energy generation and storage business). These latest delays follow similar decisions at Ford, Nissan, Volkswagen, and Mercedes-Benz, who have also eased off the [accelerator]( in their race to boost EV production. Despite EV sales skyrocketing from 3 million in 2021 to almost 14 million [last year](, both established carmakers and startups are seeing softer demand. As a result, dealerships are now grappling with parking lots full of EVs. According to data from Cox Automotive cited by [The Wall Street Journal](, the average dealership held a 125-day supply of EVs as of early June. Although the steep price tags that once came with going all-electric have dropped — 4 out of the 5 most discounted new models [were electric vehicles]( in the first half of this year — concerns about range anxiety, the availability of public chargers, and battery performance at low temperatures have all persisted. Instead, many car buyers who might have considered ditching the combustion engine altogether now seem to be opting for hybrids. Toyota’s decision to focus on hybrids [appears to be paying off](, and even Lamborghini’s CEO expects hybrids to be a “[success story](”. [Read this on the web instead](   [Sponsored by Sidebar]( Where did all the leaders go? As a leader, your peers are few and far between. Everyday, there’s a ton of things you could use some advice on… but rarely expertise in the room to rely on. A blog points you in the right direction. A podcast plugs you into a smart conversation. But to really learn from the leaders, you need to engage with them directly. [That’s what Sidebar does for you](. Using their matching engine, Sidebar connects high-achieving peers for tactical discussions and career-shifting advice. In twice-monthly meetings facilitated by an expert, a core group becomes your personal board of directors. Sidebar’s community of leaders is strong… coming from orgs like Meta and innovative tech startups like Gusto and Canva, so you will find your people. 93% of members say [Sidebar has been a game-changer]( in their professional path — whether it’s landing that promotion, launching the dream company, or leading a team to new heights. [Level-up with other leaders — discover Sidebar here]( [Level-up with other leaders — discover Sidebar here](   King Charles III of Britain is set to receive an extra £45 million (~$58 million) of public money — a more than 50% increase in his official annual income — as underlying profits from the [Crown Estate]( hit £1.5 billion and net profits soared to a record £1.1 billion in the last financial year, thanks to a lift from offshore wind farms. But what does that actually mean in the modern, post-feudal world? What is the Crown Estate? The Crown Estate is a legacy portfolio of land and property holdings owned by the British monarchy. Like in the days of yore, the Royal Family possesses big swathes of the UK’s agriculture, buildings, shoreline, seabed, and forestry — but today, the estate functions as an independent commercial business. Why is it so profitable? The entire portfolio is worth approximately £15.5 billion (~$20 billion), and includes a thriving marine sector. Indeed, the Crown Estate owns a large portion of Britain’s seabed for up to [12 nautical miles]( off the coast, and charges option fees to companies that want to reserve a slice for wind farms. Those fees helped “net revenue profit” (a somewhat confusing name) more than double year-on-year, per the trust’s latest [annual report](. With 15GW of operational offshore wind capacity, the UK is the largest market for wind power outside of China; in fact, according to last month’s government [energy report](, wind is now contributing more to electricity generation than gas. As such, the Crown Estate’s marine business has been booming. While the Crown Estate returns the majority of earnings back to the UK Treasury, 12% of its profits (cut down last year from 25%) are given to the monarchy to support “official duties” as part of the taxpayer-funded Sovereign Grant. Royal flush: Even so, the Crown Estate isn’t the only income source that the monarch can tap into: the King also owns the [lucrative duchies]( of Lancaster and Cornwall. [Read this on the web instead](   More Data - Cream always rises: Dairy sales in the US reached a whopping $76 billion in the last year, with cheese consumption up 46% in the last [2 decades](. - There will be 10,500 athletes at the upcoming [Paris Olympics](… as well as 45,000 police officers, 10,000 soldiers, and 22,000 private security guards. - Singaporeans now boast the world’s most powerful passport once again, as nationals are now able to visit a record 195 travel destinations [visa-free](. - Thousands of viewers are revisiting Veep with viewership up 353% [on Monday]( in the wake of Kamala Harris’s political ascent. - There are ~70,000 electric vehicles in Ethiopia, but only around 50 [charging stations](. The best leaders know who to listen to. But good peers are hard to find. That’s why Sidebar, a [peer-to-peer leadership program]( based around small-group conversations, is popular with senior professionals from the likes of Meta and innovative startups like Gusto. 93% of members cite Sidebar as a career game-changer — [learn more about joining Sidebar here](. Ad   Hi-Viz - How the [Paris Olympics]( have changed since the city last hosted 100 years ago. - Directories cut: An archive of [fictional brands]( across film, TV, and video game universes. Off the charts: What popular electronic device, which saw its sales peak in 2010, failed to keep momentum with consumers in the decade following? [Answer below]. [Answer here.](   Thanks for stopping by! Have some [feedback](mailto:daily@chartr.co?subject=Feedback&body=Hi, I like the newsletters, but I had a thought for you...) or want to [sponsor this newsletter](mailto:advertising@sherwoodmedia.com?subject=I’m interested in advertising with Sherwood Media)?   Not a subscriber? Sign up for free below. 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