Welcome to Worldwide music businessWeekly summaries – where we make sure you have a grasp of the five biggest stories that will become our headlines over the past seven days. MBW’s round-up is supported by Centtrip, helping over 500 best-selling artists in the world maximize their income and reduce their touring costs.
If you want to know how healthy today’s music rights business is, know this:
Universal Music Group generate over 1 million dollars in revenue each hours in the first quarter of this year.
Vivendi announced UMG’s Q1 results this week, revealing that the music company generated $ 2.2 billion from recorded music, publishing and other sources of income.
Vivendi also revealed that they plan to make the UMG public in Amsterdam “fall” in 2021.
Meanwhile, a letter sent this week to the British government, co-signed by the likes of Paul McCartney, Led Zeppelin, Sting, Chris Martin and Stevie Nicks, has urged the artists to be paid differently than the streaming UK “leaning” plays.
Here’s a summary of what happened …
Universal Music Group’s Q1 results have been announced, with the permission of the majority parent company, Vivendi – the company yesterday (April 22) said that they expect UMG to go public in Amsterdam. “Autumn” year 2021.
For now, let’s move on with the first three months of this year… another impressive period for UMG and its CEO and President, Sir Lucian Grainge.
As a result of Vivendi, Universal Music Group’s total sales – including recorded music, publishing, and other sources of income – reached € 1.81 billion ($ 2.20 billion) in Q1, up 9 , 4% over the same period last year.
Just because we know MBW readers look for the following stats: $ 2.20 billion in quarterly revenue equates to $ 24.5 million per day, or … yes … just over $ 1 million a hours, during the entire Q1.
As you probably already know, a UK Parliament Survey is currently looking at the economics of music streaming in the UK.
One of the suggestions they are working on is whether the algorithm does Spotify (ie plays that were chosen for you, as opposed to those you were forced to play) must be handled according to the same rules as “fair remuneration” on radio in the UK. Ergo: Will 50% of the proceeds from these “back-up” plays go directly to the artists, no matter how discouraged they might be at Record Label Land.
It’s no surprise that record labels aren’t overly concerned with the idea – and the artists are very interested in this idea.
So here’s the big news this week: the stature of the artists calling on the UK government to enforce “fair remuneration” on streaming services has become blockbuster.
Apple Music sparked rage last Friday (April 16) by making several proud statements about its payments to artists and musicians – and according to the association, several claims potentially damaging on comparable distributions of Spotify.
Those claims all appeared in an email newsletter sent by Apple to industry and the artist community. This newsletter has been collected by MBW and is republished below.
Apple did not mention Spotify in the letter at all, though you wouldn’t have guessed it from the media afterwards.
That’s especially true of some of the headlines relating to the following Apple claim: “Our average per play is $ 0.01.”
Spotify, which has poured hundreds of millions of dollars into podcasting over the past few years, submitted a user survey in November showing that it was considering launching a standalone podcast subscription service.
Apple just beat Spotify. This week, the tech giant unveiled Apple’s Podcast Subscriptions, which are described as “the global marketplace for listeners to explore premium subscriptions offered by their favorite creators along with million free programs on Apple Podcasts ”.
Apple’s official announcement announcing this news included quotes from executives from various media and entertainment brands praising the launch of the new service.
Some of those companies include Tenderfoot TV, Pushkin Industries, Radiotopia from PRX, QCODE, NPR, Los Angeles Times and The Athletic.
Dennis Kooker, President of Global Digital Business and US Sales at Sony Music Entertainment, among them.
Who will be the fastest growing music company in 2021? Don’t ignore Songtradr.
In just the past six months, the Los Angeles-based company – which claims itself as the “largest B2B music licensing market in the world” – acquired music and sound design company Song Zu (in one multi-million dollar deal), as well as UK-based synchronization licensing Cuesongs.
In addition, Songtradr, which raised $ 30 million in Series C rounds last summer, recently launched a new branded division, Vinyl By Songtradr, under the leadership of the former director. UMG Mike Tunnicliffe and former Coca Cola CEO Joe Belliotti.
This week brought even bigger news from Songtradr, which through the acquisition turned the company into a rapidly expanding field of the modern music business.
Welcome to Music Business Worldwide’s weekly recap – where we’ve made sure you’ve captured the five biggest stories that will become our headlines over the past seven days. The all-MBW event, backed by Centtrip, helps over 500 of the world’s best-selling artists maximize their income and reduce their touring costs.Worldwide music business