Music Publishing Archives - Digital Music News https://www.digitalmusicnews.com/category/music-industry/publishing/ The authority for music industry professionals. Mon, 11 Nov 2024 23:56:43 +0000 en-US hourly 1 https://wordpress.org/?v=6.6.2 https://www.digitalmusicnews.com/wp-content/uploads/2012/04/cropped-favicon-1-1-32x32.png Music Publishing Archives - Digital Music News https://www.digitalmusicnews.com/category/music-industry/publishing/ 32 32 Ubisoft Extends Global Publishing Deal with BMG https://www.digitalmusicnews.com/2024/11/11/ubisoft-extends-global-publishing-deal-with-bmg/ https://www.digitalmusicnews.com/2024/11/11/ubisoft-extends-global-publishing-deal-with-bmg/#respond Mon, 11 Nov 2024 23:56:43 +0000 https://www.digitalmusicnews.com/?p=307003 Ubisoft reinks publishing administration deal with BMG

Photo Credit: Ubisoft (Far Cry 6)

Ubisoft Entertainment has announced it has re-inked its long-standing global publishing administration partnership with BMG. Ubisoft is the game developer behind the Assassin’s Creed, Far Cry, Just Dance, and Tom Clancy game series.

Earlier this year, Ubisoft made history when composer Stephanie Economou won the first-ever Grammy Award in the new category Best Score Soundtrack for Video Games & Other Interactive Media for Assassin’s Creed Valhalla: Dawn of Ragnarok.

Throughout their partnership, BMG and Ubisoft have teamed together on a number of successful creative collaborations with BMG songwriters contributing to musical works including Einar Selvik (Assassin’s Creed Valhalla), Mothica (Rocksmith), Profi Baloa (Far Cry 6), and Domino Saints and Ayo & Teyo (Just Dance).

“Ubisoft Music is super happy to continue this journey with BMG, whose shown tremendous support over the last few years for partnerships with our major brands and unique creative collaborations,” says Alkis Argyriadis, Ubisoft’s Head of Music.

“BMG takes great pride in representing Ubisoft, one of the world’s most successful and innovative game developers, as our long-time partner,” adds Maite Bursic, BMG’s VP, Music Publishing Creative. “Their versatility as a creative leader, expanding influence in music, alongside a growing presence in film and television, closely aligns with our strategic focus and shared commitment to pushing the boundaries of what’s possible in entertainment.”

Ubisoft was founded in 1986 and has evolved into a leading game developer and publisher. With a 38-year legacy of creating blockbuster franchises and groundbreaking new IPs, Ubisoft offers one of the industry’s most diverse portfolios. The company’s global network of studios and offices across 30 countries has been instrumental in driving their role at the forefront of the gaming industry’s explosive growth.

Ubisoft’s slate of recent releases include Skull and Bones, Star Wars Outlaws, and Just Dance 2025 Edition. Other highly anticipated releases include NFL Primetime Fantasy, Assassin’s Creed Shadows, and upcoming Netflix animated series Tom Clancy’s Splinter Cell: Deathwatch.

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Sony Music Publishing Indonesia Signs Exclusive Global Deal with Sal Priadi https://www.digitalmusicnews.com/2024/11/06/sony-music-publishing-indonesia-signs-global-deal-with-sal-priadi/ https://www.digitalmusicnews.com/2024/11/06/sony-music-publishing-indonesia-signs-global-deal-with-sal-priadi/#respond Wed, 06 Nov 2024 19:56:14 +0000 https://www.digitalmusicnews.com/?p=306600 Sony Music Sal Priadi

Photo Credit: Sal Priadi / Sony Music Publishing Indonesia

Sony Music Publishing Indonesia signs an exclusive global deal with Indonesian singer, songwriter, and actor Sal Priadi.

Sony Music Publishing Indonesia (SMPI) has announced the signing of an exclusive global publishing agreement with acclaimed Indonesian singer, songwriter, and actor Sal Priadi. The deal sees Priadi’s entire back catalog under the SMPI umbrella.

Sal Priadi’s most recent album, Markers And Such Pens Flashdisks, released in April 2024, has already surpassed 176 million Spotify streams, with the album’s track, “Gala bunga matahari” recently debuting on Spotify’s Viral 50 Global chart at #16, and Spotify’s Top 50 Indonesia chart at #1. Following the success of the album, Sal held a five-city tour from August to September 2024.

“I joined Sony Music Publishing Indonesia because I trust the people behind the company have the capability and spirit to introduce my creative works on a global level,” said Sal Priadi. “I believe SMPI will support me in exploring all the potential that exists within me.”

“We are thrilled to welcome Sal Priadi to the SMP family. His music transcends cultural boundaries, touching the hearts of listeners through relatable narratives and soulful melodies,” said Carol Ng, President, Asia, Sony Music Publishing.

“We are very glad to be Sal Priadi’s very first publishing company,” adds Anti Ariandini, General Manager, Sony Music Publishing Indonesia. “His unique talent, captivating storytelling, and undeniable charisma have resonated with audiences worldwide and we are committed to supporting his artistic vision and expanding his reach to new heights.”

Known for his captivating musical storytelling and distinctive vocal style, Sal has cultivated a dedicated fanbase across Indonesia and beyond. He has enjoyed multiple hit collaborations, including “Jangan Bertengkar Lagi Ya? OK? OK!” which was produced by renowned top independent artist Pamungkas, as well as “Amin Paling Serius” with Nadin Amizah, and boasts over 146 million streams on Spotify.

Sal first earned widespread success in 2018 with his single, “Ikat Aku di Tulang Belikatmu.” Since then, he has achieved numerous accolades, including three consecutive nominations for Best Male Pop Artist at the AMI Awards; a Billboard Indonesia Music Awards nomination for Best Collaboration / Song of the Year in 2020; and many more.

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Primary Wave Music Partners with the Estate of Jerry Jeff Walker https://www.digitalmusicnews.com/2024/10/25/primary-wave-music-partners-with-the-estate-of-jerry-jeff-walker/ https://www.digitalmusicnews.com/2024/10/25/primary-wave-music-partners-with-the-estate-of-jerry-jeff-walker/#respond Fri, 25 Oct 2024 19:30:17 +0000 https://www.digitalmusicnews.com/?p=305311 Jeff Walker

Photo Credit: Jerry Jeff Walker / Primary Wave Music

Primary Wave Music announces a partnership with the estate of legendary country and folk singer-songwriter, Jerry Jeff Walker.

Leading independent publisher Primary Wave Music has announced a new partnership with the estate of legendary country and folk singer-songwriter, Jerry Jeff Walker. Terms of the deal include partnering with the estate on Walker’s music publishing catalog, as well as his recording copyrights and artist royalties.

The new relationship will also provide access to the estate to Primary Wave’s marketing team and publishing infrastructure, working closely on new marketing, branding, digital, and synch opportunities, as well as film and television projects.

Included in the deal are some of Jerry Jeff’s biggest hits across his 50-plus decades in music, such as “Mr. Bojangles,” “Sangria Wine,” “Railroad Lady,” “Trashy Women,” and more. Perhaps his best known song, “Mr. Bojangles,” was released in 1968 and went on to become an American pop standard. It garnered Walker a Grammy nomination for Best Country Vocal Performance (Male), and would go on to be covered by a number of heavy hitting artists, including Bob Dylan, Harry Belafonte, Nina Simone, and Sammy Davis, Jr.

The deal also includes an agreement for Jerry Jeff Walker’s recorded masters, in partnership with his label Tried & True Music, to be released and distributed through the legendary Sun Records. For future releases, Sun Records will provide overall catalog marketing strategy, including streaming, social media marketing, and physical releases.

“When JJ passed, Jimmy Buffett was first at my door asking what he could do,” said Susan Walker, Jerry Jeff’s wife and longtime manager. “‘Help me find the perfect home for JJ’s catalog and label,’ I asked. And he did. May both their words and songs be remembered and cherished forever. Bubbles up!”

“A friend of mine had one final wish before he passed away — a big party with his favorite artist, Jerry Jeff Walker, performing live,” shared Samantha Rhulen, SVP of Business and Legal Affairs. “He got his wish. I will always remember that night and what Jerry Jeff’s music did for him and all of our friends. Primary Wave is honored to partner with the Walker family and will ensure that Jerry Jeff is remembered for the impact his music has made on so many people.”

In the early 1970s, Jerry Jeff Walker became one of the arbiters of the internationally famous Austin musical community alongside Willie Nelson. His songs are “the way he makes the world make sense, how he passed on stories of the people he met, the way he felt on a given morning.” He has celebrated the music of peers like Guy Clark and Townes Van Zandt, and served as a fountainhead and inspiration to younger musicians like Robert Earl Keen, Pat Green, Jack Ingram, and Garth Brooks.

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45RPM Launches Publishing Arm Backed by Universal Music Publishing Group https://www.digitalmusicnews.com/2024/10/23/45rpm-publishing-arm-umpg-partnership/ https://www.digitalmusicnews.com/2024/10/23/45rpm-publishing-arm-umpg-partnership/#respond Wed, 23 Oct 2024 18:41:07 +0000 https://www.digitalmusicnews.com/?p=304986 45rpm publishing

Photo Credit: 45RPM

Leading UK music supervision company 45RPM launches a music publishing arm with the support of Universal Music Publishing Group.

45RPM, a leading UK-based music supervision company, has announced the launch of a music publishing arm with the support of Universal Music Publishing Group (UMPG).

Since its debut in 2022, 45RPM has quickly established itself as a trailblazing music supervision collective. Founded by industry experts Iain Cooke, Sarah Bridge, Catherine Grieves, and Nick Angel, 45RPM added to its heavyweight team Ayla Owen, former Head of Music at BBH London and ex-European VP of Sync at Warner Chappell Music, who took on the role of 45RPM Managing Director in January this year.

At the core of 45RPM’s ethos is the provision of a comprehensive, full-service experience for clients, offering unparalleled creative guidance in soundtrack development, composer partnerships, rights negotiation, budget management, and on-camera music supervision. By venturing into music publishing, 45RPM will spotlight exceptionally talented composers and songwriters positioned for success in the world of film, TV, advertising, and gaming.

Home to award-winning composers and songwriters, Universal Music Publishing Group offers a global platform unrivaled in the music industry. This collaboration provides a unique opportunity for composers and songwriters to benefit from dual expertise, blending the creative prowess of top music supervisors at 45RPM with the prestigious and comprehensive resources of Universal Music Publishing.

“We are thrilled to embark on this innovative partnership with Universal Music Publishing Group,” said Ayla Owen, Managing Director of 45RPM. “Through this collaboration, composers and songwriters can access the best of both worlds: the specialized attention and industry insight of our seasoned music supervisors, combined with the expansive reach and legacy of Universal Music Publishing. Together, we aim to elevate the music creation process and amplify the voices of exceptional talents worldwide.”

“What we also very much hope to do in our partnership with UMPG is bring composers more into the world of creating songs and likewise help facilitate songwriters into composing music for film and TV,” added Nick Angel, Founder and Director of 45RPM. “We’re perfectly placed to be a bridge for both, and would be delighted if we could in any way be a catalyst for both.”

Natasha Baldwin, Executive Vice President, UMPG Classics & Screen, said, “At UMPG, we are uniquely positioned to champion both composers and songwriters on a global scale with our specialist skills in screen and classical music, alongside our extensive reach across all mainstream genres. We are therefore delighted to enter into this collaboration with 45RPM, a company clearly blazing a trail in the music supervision world and to amplify their offering to composers and songwriters in the audiovisual space.”

Tom Foster, Senior Vice President, Film and TV, Europe, UMPG, concluded, “45RPM have an incredible track record in music supervision and we are delighted to be part of the journey as they build their publishing roster. I’m particularly excited about the opportunities this collaboration brings for UMPG songwriters and composers in terms of original songs and score for TV and film productions.”

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Concord Confirms $217.3 Million Daddy Yankee Catalog Purchase, Eyes Other Deals for ‘Important Content in the Latin Music Space’ https://www.digitalmusicnews.com/2024/10/18/daddy-yankee-catalog-concord-purchase/ https://www.digitalmusicnews.com/2024/10/18/daddy-yankee-catalog-concord-purchase/#respond Fri, 18 Oct 2024 16:38:28 +0000 https://www.digitalmusicnews.com/?p=304645 daddy yankee catalog

A live performance from Daddy Yankee, who’s sold his catalog to Concord. Photo Credit: Chrishonduras

Earlier this week, DMN first reported on Concord’s over $217 million buyout of “a highly successful” Latin artist’s catalog. Now, the company has officially confirmed a deal with Daddy Yankee.

Concord reached out to Digital Music News today with a formal release about its Daddy Yankee IP agreement. Our earlier coverage stemmed from a KBRA breakdown of the business’s financials and holdings – including a recent $217.3 million play for the “catalog of assets by a highly successful Latin Music artist and songwriter.”

Notwithstanding the latter specification, KBRA didn’t come right out and identify the artist’s name. However, the rating agency did describe the appropriate act as one defendant in “a copyright infringement claim against several artists in the Latin Music genre.”

While what’s likely the claim in question is sweeping to say the least – we’ve broken down that reggaeton-theft action at length – we noted that the commercially prominent Daddy Yankee is one of the suit’s many defendants.

Shifting back to the present, Concord has eliminated all doubt by acknowledging the purchase of a stake in Daddy Yankee’s publishing catalog and masters, on top of “certain name, image, and likeness rights” to boot.

Though Concord opted not to disclose the exact ownership specifics, the Nashville-headquartered company specified that the pact “encompasses Daddy Yankee’s work from 2002 through 2019.” During the period, the Puerto Rican artist released five studio albums (beginning with 2002’s El Cangri.com) as well as a number of much-streamed non-album singles.

“Since he burst onto the scene,” added Concord CEO Bob Valentine, “Daddy Yankee has been at the forefront of not only reggaeton, but pop music generally.

“We were incredibly excited by this opportunity to work alongside Daddy Yankee to continue building on his remarkable legacy and significance. His real and lasting cultural impact is clear, and Concord is thrilled to be a part of his story,” the longtime exec concluded.

Looking ahead to the future, Concord intends to manage Daddy Yankee’s catalog out of its Miami office – with plans in place to keep on acquiring “important content in the Latin music space” moving forward.

Besides achieving ongoing growth across a number of quick-developing markets – Brazil, Mexico, and Argentina among them – Latin music is generating more recorded revenue than ever in the U.S., according to RIAA data.

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Litmus Music Acquires Randy Newman IP in Latest Deal: ‘His Songs Continue to Transcend Time and Illuminate Films’ https://www.digitalmusicnews.com/2024/10/17/randy-newman-catalog-deal-litmus-music/ https://www.digitalmusicnews.com/2024/10/17/randy-newman-catalog-deal-litmus-music/#respond Thu, 17 Oct 2024 12:00:10 +0000 https://www.digitalmusicnews.com/?p=304533 randy newman catalog sale litmus music

Randy Newman, who’s inked a song rights deal with Litmus Music. Photo Credit: Pamela Springsteen

Another day, another high-profile song rights deal – this time involving Randy Newman, who’s sold an interest in his catalog to Carlyle Global Credit-backed Litmus Music.

Litmus formally revealed its latest investment today, about six weeks after reportedly scooping up Opus Music Group. Running with the newer deal, the purchasing party says it’s specifically secured 80-year-old “Randy Newman’s share of his recorded music and publishing.”

Like with most recent catalog purchases, the buyer, at least in its official announcement, opted against identifying the precise financials at hand. (Other massive catalog deals are apparently closing without so much as a public disclosure.)

But Litmus did indicate that the agreement extends to the Songwriters Hall of Fame inductee’s well-known work on animated films including Toy Story as well as its sequels (Newman is the sole producer and songwriter on “You’ve Got a Friend in Me”), Cars, Monsters, Inc., and more.

Also as described by Litmus, the play includes a variety of Newman hits from decades past, among them 1983’s “I Love L.A.,” the 90s’ “Feels Like Home,” 1967’s “Mama Told Me Not to Come,” and Monk theme “It’s a Jungle Out There,” to name just a few.

All told, besides a variety of soundtrack albums (including for 1998’s Pleasantville and the more recent Marriage Story), Newman has released about a dozen full-length solo studio projects, including an eponymous 1968 debut and 2017’s Dark Matter.

Though Newman didn’t provide a statement about the sale for Litmus’ release, co-founder and CCO Dan McCarroll emphasized that he and his team “couldn’t be more proud and excited to acquire Randy’s catalog of beautiful, witty, and sharply observational songs.”

And in remarks of his own, Litmus co-founder and CEO Hank Forsyth touted the professional accomplishments and career of the 23-time Grammy nominee and seven-time winner.

“Randy’s music has touched so many generations,” communicated Forsyth. “His songs continue to transcend time and illuminate films. Dan and I and the entire Litmus team are so grateful Randy has trusted us as his partner to care for these songs and recordings. It is an honor and responsibility we don’t take lightly.”

For Litmus, the Newman partnership follows several seemingly sizable deals – including, besides the initially mentioned Opus play, IP pacts with Katy Perry, Benny Blanco, and, in its first investment after arriving on the scene in 2022, Keith Urban. (Details about these and hundreds of others are compiled in DMN Pro’s Music IP Acquisition Tracker.)

Meanwhile, notwithstanding the end of the company that kicked off the catalog-purchase craze, the likes of Reservoir Media, Sony Music (it turns out Pink Floyd was serious about selling after all), Jonas Group Publishing, Primary Wave, and HarbourView Equity Partners are still racking up song-rights investments as well.

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Reservoir Scores k.d. lang Publishing Partnership, Including the Singer-Songwriter’s ‘Future Works and Partial Catalog’ https://www.digitalmusicnews.com/2024/10/16/reservoir-media-kd-lang-deal/ https://www.digitalmusicnews.com/2024/10/16/reservoir-media-kd-lang-deal/#respond Wed, 16 Oct 2024 15:04:25 +0000 https://www.digitalmusicnews.com/?p=304417 reservoir media k.d. lang deal

(l to r) Reservoir Media founder and head Golnar Khosrowshahi, k.d. lang, and president and COO Rell Lafargue. Photo Credit: Reservoir

Reservoir Media (NASDAQ: RSVR) has inked a publishing deal with k.d. lang, including a stake in the singer-songwriter’s existing body of work and futures.

Reservoir and Edmonton-born k.d. lang (real name Kathryn Dawn Lang) unveiled their agreement today, about one week removed from the former’s acquisition of producer Jack Douglas’s own catalog.

In keeping with the longstanding sub-sector-wide practice of not disclosing IP purchases’ specifics, Reservoir opted against shedding light on the precise terms at hand. However, the New York City-based business did note that the k.d. lang deal extends to the Canadian Music Hall of Fame inductee’s “future works and partial catalog.”

Just at the top level, that overarching catalog encompasses 12 solo studio albums – 1988’s Shadowland through 2008’s Watershed – as well as several collaborative projects, multiple works as part of The Reclines, and a variety of singles. Among the latter are k.d. lang-penned efforts including 1992’s “Constant Craving,” which currently has 50.23 million Spotify streams and a substantial number of plays across other platforms.

Addressing the Reservoir partnership, the eight-time Juno winner k.d. lang pointed to a strong relationship with the company’s founder and CEO, Golnar Khosrowshahi.

“It is an absolute thrill to partner with Reservoir!” the 62-year-old Ingénue creator relayed. “Golnar is a force of nature and understands me as an artist. I am deeply inspired and have utmost confidence in this creative partnership.”

And in remarks of her own, Khosrowshahi noted that she’s “particularly proud to be working with k.d.” as a fellow Canadian and emphasized a goal of helping the professional’s body of work find new fans.

“It never gets old when a legendary artist like k.d. lang decides to call Reservoir her home,” Khosrowshahi relayed in part. “Her incomparable voice and music are a gift to the world. We look forward to helping her share those gifts with new audiences and supporting her as she steps into the next chapter of her career.”

In September, Reservoir scored publishing pacts with Snoop Dogg and his Death Row Records label – though the same month also saw the business face a call to launch “a full strategic review” over its allegedly “substantially undervalued” shares. That demand came from Irenic Capital Management, and Reservoir in a follow-up said it “values shareholder input” and remains “focused on executing our strategy to drive value.”

At the time of writing, Reservoir stock was hovering around $9 per share – up slightly from yesterday’s close, nearly 10% across the past five trading days, and over 50% from mid-October of 2023.

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Julian Bunetta Signs Global Deal with Sony Music Publishing https://www.digitalmusicnews.com/2024/10/07/julian-bunetta-signs-global-deal-with-sony-music-publishing/ Mon, 07 Oct 2024 19:41:54 +0000 https://www.digitalmusicnews.com/?p=303604 Julian Bunetta deal sony music publishing

Photo Credit: Katie Welle, Julian Bunetta, Damon Bunetta by David OD

Sony Music Publishing announces the signing of multi-genre songwriter and producer Julian Bunetta to a global publishing agreement.

Sony Music Publishing has announced the signing of multi-genre songwriter and producer, Julian Bunetta, to a global publishing agreement. Julian Bunetta has been a driving force behind some of the biggest contemporary hits across pop, country, and more, with an expansive body of work exceeding 30 billion streams. Bunetta has achieved acclaim as a key collaborator with top talent, including Sabrina Carpenter, Teddy Swims, Thomas Rhett, One Direction, Niall Horan, Rudimental, and many others.

His creative impact has continued to reach new heights this year, thanks to his co-writing and co-producing work on chart-toppers like Sabrina Carpenter’s “Espresso,” a Top 40 #1 hit that also went #1 on Billboard’s Global 200 and Global Ecxl. US charts. Other recent hits include Teddy Swims’ “Lose Control,” which secured similar #1 spots on the charts, as well as several airplay rankings, including Pop, Adult Pop, and Adult R&B. Bunetta’s winning streak has continued with Sabrina Carpenter’s latest single, “Taste,” which just completed an entire month at #1 on the UK Official Singles chart.

“I’m excited to be working with the Sony team,” said Julian Bunetta. “I’ve known Katie [Welle] and Jon [Platt] nearly my whole career, and they’ve always been incredibly supportive of my songwriting.”

“Julian and I have crossed paths many times since the beginning of his career, and it has been incredible to see all that he has accomplished,” added Jon Platt, Chairman & CEO of Sony Music Publishing. “His continued success speaks volumes about his talent and integrity, and we are honored to be on this journey with him.”

“Julian is an exceptional talent who continues to up his game,” said Sony Music Publishing’s SVP of Creative, Katie Welle. “His authenticity shines through in everything he works on, and he brings the best out of everyone. We are excited to join forces with Julian and his team, and we look forward to further extending his success together.”

Throughout his career, Julian Bunetta has created unforgettable hits, including One Direction’s “Story of My Life,” and “Drag Me Down,” Niall Horan’s “Slow Hands,” Rudimental’s “These Days,” and Thomas Rhett’s “Look What God Gave Her.” He also contributed across Rhett’s 2017 Grammy-nominated album, Life Changes. His accolades include a 2019 Ivor Novello Award, 12 BMI top-performing song awards, over 15 RIAA multi-platinum and platinum certifications, five US Radio #1’s, and seven Billboard Hot 100 Top 10s, among many others.

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BMG Inks Worldwide Administration Agreement for the Catalog of Flamenco Guitar Legend Paco de Lucía https://www.digitalmusicnews.com/2024/10/01/bmg-paco-de-lucia-admin-deal-global/ Tue, 01 Oct 2024 19:25:23 +0000 https://www.digitalmusicnews.com/?p=302761 BMG inks global admin deal for flamenco guitarist paco de lucia

Photo Credit: Paco de Lucía by Manuel Nieto

BMG inks a worldwide administration agreement for the catalog of flamenco guitar legend Paco de Lucía.

BMG has announced a global agreement to represent the catalog of legendary flamenco guitarist and composer Paco de Lucía. The deal with de Lucía’s publishing company, Río de la Miel Ediciones, includes hits like “Entre Dos Aguas,” “Mediterranean Sundance/Rio Ancho,” and “Solo Quiero Caminar,” representing a major step in preserving and promoting the legacy of one of flamenco’s most influential artists.

“Paco’s music is timeless, and this agreement with BMG ensures that his legacy will continue to flourish and reach new generations of music lovers around the world,” said representatives of Paco de Lucía’s estate.

“We are honored to administer the publishing catalog of Paco de Lucía, a true legend whose music continues to inspire and captivate audiences worldwide,” said Javier Doria, BMG Managing Director Spain. “This partnership reflects BMG’s commitment to preserving and celebrating the rich cultural heritage of flamenco music.”

A four-time Latin Grammy winner, Paco de Lucía has left an indelible mark on flamenco guitar, transcending the boundaries of the genre. Throughout his illustrious career, de Lucía has collaborated with renowned musicians, like guitarist Carlos Santana, pianist Chick Corea, and guitarist Al Di Meola. In the 1970s, he formed an important musical alliance with singer Camarón de la Isla, which played a pivotal role in the emergence of the New Flamenco movement.

The deal follows the release of Pepito y Paquito, an album featuring 21 previously unreleased tracks by the young Pepe and Paco de Lucía. These recordings, released via BMG in collaboration with the Paco de Lucía Foundation, date back to 1959 and 1960, and provide a unique insight into the early musical endeavors of the legendary Spanish flamenco guitarist and his brother at the ages of 13 and 11, respectively.

In 2023, BMG released Paco de Lucía: The Montreux Years, a collection of Paco de Lucía’s best live performances at the Montreux Jazz Festival between 1984 and 2012.

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Reservoir Has ‘Substantially Undervalued’ Shares and Should Launch ‘A Full Strategic Review,’ Activist Investor Says — The Company Promptly Responds https://www.digitalmusicnews.com/2024/09/30/reservoir-media-strategic-review-irenic-capital-management/ Mon, 30 Sep 2024 23:54:44 +0000 https://www.digitalmusicnews.com/?p=302662 Reservoir Media fiscal quarter

Photo Credit: Reservoir Media

Reservoir Media stock (NASDAQ: RSVR) is “substantially undervalued” – at least according to Irenic Capital Management, which owns about 8.1% of shares and is now demanding “a full strategic review.”

New York City-headquartered Irenic Capital just recently expressed that clear-cut position in a regulatory filing. According to the document, the signatory entity possesses just shy of 5.3 million Reservoir shares, 83,513 of which were purchased in either August or September.

For additional background, Irenic per its website “invests in public companies and works collaboratively with firm leadership.” The overarching aim of said collaborations “is to produce improvements in operating and financial performance that create long-term value for the company and its owners,” the same source indicates.

And as described by Reuters, Irenic isn’t a stranger to rattling the cage or to demanding strategic reviews in particular. To be sure, one such push reportedly came earlier in September, when the hedge fund formally called on Kinaxis, an Ottawa-based developer of supply-chain-management software, to kick off a review of its own.

Bringing the focus back to Reservoir Media, Irenic is of the belief that the Golnar Khosrowshahi-led business’s shares “are substantially undervalued,” the filing spells out.

Moreover, Irenic has encouraged Reservoir “to undertake a full strategic review of all alternatives to maximize shareholder value and to form a special committee of the Board to oversee such review process.”

DMN reached out to Reservoir for comment and received a brief response: “The Reservoir Media Board of Directors values shareholder input and we remain focused on executing our strategy to drive value, in line with our fiduciary duty to all shareholders.”

While that statement doesn’t provide concrete answers about how the situation will unfold, it’ll be worth monitoring the episode – and especially the stock-purchase moves of Irenic – in the coming weeks and months. (Among other things, Reservoir reappointed several board members at its annual stockholder meeting last month.)

Closer to the present, we don’t lack insight into the strategy and financials of Snoop Dogg-partnered Reservoir, which in April unveiled an up to $100 million offering to pay down debt and scoop up more music IP. Without rehashing the details at length here, we previously covered the company’s Q2 2024 revenue growth, which was fueled by publishing gains and arrived despite a dip on the recorded side.

Wrapping with a recap of RSVR’s recent performance, the stock’s value grew 3.6% during today’s trading to finish at $8.11 per share. That’s up 14.4% from 2024’s beginning and nearly 36% from late September of 2023, but less than half a percent from the top of April of 2024.

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Jonas Group Publishing Acquires Julia Michaels Recording and Publishing Catalog https://www.digitalmusicnews.com/2024/09/30/jonas-group-acquires-julia-michaels-recording-publishing/ Mon, 30 Sep 2024 18:02:15 +0000 https://www.digitalmusicnews.com/?p=302618 Jonas Group acquires Julia Michaels recording and publishing catalog

Photo Credit: Julia Michaels by Raul Romo

Jonas Group Publishing and Jonas Catalog Holdings have acquired the publishing rights and recordings of singer-songwriter Julia Michaels.

Jonas Group Publishing has announced the acquisition of publishing copyrights and recordings of singer-songwriter Julia Michaels. Michaels’ body of work includes the hits “If the World Was Ending” with JP Saxe, Selena Gomez’s “Lose You to Love Me,” Maren Morris’ “Circles Around This Town,” and Dua Lipa’s “Pretty Please.” She has also penned hits for Lady Gaga, Shawn Mendes, Maroon 5, Diplo, Britney Spears, Nick Jonas, Justin Bieber, Keith Urban, and many more.

“Julia Michaels is a known master of songwriting and is revered across multiple genres of music,” said Jonas Group Publishing president Leslie T. DiPiero. “Julia, along with her manager Beka Tischker and their amazing team, have a choice on who they trust to represent her works. We here at Jonas Group Publishing are truly honored that they have chosen us. Listening to her catalog of songs makes us feel like kids in a candy store!”

“Music is all about passion, and I’m so happy this music lives with Lesie, Kevin [Jonas Sr.], and their passionate team that values songwriters and creators,” added Michaels. “I look forward to working with them and growing the reach of these songs.”

“My family and I have been big fans of Julia Michaes for years,” says Kevin Jonas Sr., Founder and Chairman, Jonas Group Entertainment. “Her music has been a part of our journey, and we’ve been fortunate enough to experience the magic of her songs firsthand. We’re excited to work with her and her team to continue sharing these incredible songs with the world and to build on the success they’ve already seen.”

“This catalog is truly special for Jonas Catalog Holdings and Jonas Group Publishing,” Jonas continues. “It’s not just about the hits she’s created; it’s about the heart and soul in each track. We could not have acquired this catalog without the support and expertise of our financial partner, Corrum Capital Management, who we thank and look forward to many more acquisitions together. We must also thank our trusted partners, Access Media Advisory and Teresa Miles Walsh, as well as Moghan Music, for providing valuable assistance throughout the purchase of the catalog.”

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Edgar Barrera Renews Global Deal with Sony Music Publishing Latin https://www.digitalmusicnews.com/2024/09/26/edgar-barrera-renews-global-deal-with-sony-music-publishing-latin/ Thu, 26 Sep 2024 18:20:02 +0000 https://www.digitalmusicnews.com/?p=302346 Edgar Barrera Sony Music Publishing Latin deal renewed

Photo Credit: Edgar Barrera & Jorge Mejia (Sony Music Publishing)

Sony Music Publishing Latin announces the renewal of its global publishing deal with Edgar Barrera.

Sony Music Publishing Latin has announced the renewal of its global publishing deal with songwriter, producer, recording engineer, and musician Edgar Barrera. The agreement extends the company’s longstanding partnership with Barrera, which began in 2014.

The news coincides with Barrera’s latest achievement as the leading nominee for the 2024 Latin Grammy Awards for the second year in a row, with a total of nine nominations in categories including Songwriter of the Year and Producer of the Year.

“I am very grateful and excited to extend my relationship with Sony Music Publishing, to start a new chapter on a journey that started 10 years ago. Jorge [Mejia] and Jon [Platt] have always supported all of my crazy ideas and given me a safe space to continue growing as a writer and music executive,” says Barrera.

Edgar Barrera has penned songs for top artists including Camila Cabello, Becky G, Ariana Grande, Shakira, Karol G, Peso Pluma, Selena Gomez, Marc Anthony, and countless others. With 21 Latin Grammy awards under his belt, some of his biggest hits include “un x100to” by Grupo Frontera and Bad Bunny, “La Bachata” by Manuel Turizo, “Hawái” by Maluma, “Mi Ex Tenia Razon” by Karol G, and “Bam Bam” by Camila Cabello and Ed Sheeran.

“Edgar is one of the most hardworking, versatile, talented, and smart songwriters I’ve had the pleasure to work with, period,” shares Sony Music Publishing President and CEO, Latin America and US Latin, Jorge Mejia. “Most importantly, over the years, I’ve learned that for Edgar, it’s not about the accolades or the records or barriers that he breaks time and again — it is about the music. With that mindset, I know Edgar is possibly just getting started. We are beyond honored to be part of his team and can’t wait to see what’s next.”

Barrera has continued to earn critical acclaim and prestigious accolades, having been nominated for Songwriter of the Year at the 2024 Grammys, making history as the only Spanish-language artist to appear in a general category at this year’s awards. His work also achieved Grammy wins in categories, including Best Música Urbana Album with Karol G’s Mañana Será Bonito.

Last year, Barrera also broke records by becoming the most nominated artist at the 2023 Latin Grammys and took home three awards, including Songwriter of the Year and Producer of the Year. Additionally, he spent a record-setting 32 weeks as Billboard’s No. 1 Latin producer, was named BMI’s 2023 Regional Mexican Songwriter of the Year, and was a recipient of BMI’s Latin Impact Award.

Edgar Barrera was represented in the deal by his long-time counsel, Brian Alvarez.

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Reservoir Inks Snoop Dogg and Death Row Records Publishing Deals, Including the Rapper’s ‘Entire Catalog of Hits and Future Works’ https://www.digitalmusicnews.com/2024/09/24/snoop-dogg-death-row-reservoir-media-publishing-deals/ Tue, 24 Sep 2024 20:47:42 +0000 https://www.digitalmusicnews.com/?p=302176 snoop dogg reservoir deal

Snoop Dogg and his Death Row Records label have inked publishing deals with Reservoir Media. Photo Credit: Dah Dah

Reservoir Media has officially inked publishing pacts with Snoop Dogg and his Death Row Records label.

New York City-based Reservoir reached out today with word of the tie-ups, which represent the latest in a line of hip-hop deals and investments for the company. As described by the involved parties, the union extends to Snoop Dogg’s domestic publishing (existing works as well as futures) and the entire Death Row catalog.

February of 2025 will mark the third anniversary of Snoop Dogg’s Death Row purchase – minus certain underlying song rights, it’s worth reiterating. Building on the included body of work, however, the 16-time Grammy nominee has since taken to releasing fresh projects like 2022’s BODR and more recent collaborations with Tha Dogg Pound.

Addressing the Reservoir union with a brief statement, the longtime Dr. Dre collaborator Snoop Dogg communicated: “I’m so honored to have them as a partner and excited for all the great things to come with the catalogue as well as new music.”

And in remarks of her own, Reservoir founder and head Golnar Khosrowshahi touted the varied career accomplishments of 52-year-old Snoop Dogg.

“Being in business with Snoop is an exciting opportunity to support his legendary catalog, leveraging his massive stardom to further embed his music across mainstream media,” indicated Khosrowshahi, whose company generates about 68% of its revenue from publishing and another 28% from recordings.

“This deal also marks a unique moment to help further the legacy of an important and valuable brand like Death Row. Snoop has come full circle with Death Row, showcasing his ongoing dedication to upholding its rich history – something Reservoir has proven as a core value and area of expertise across our business,” the exec concluded.

Earlier this month, Reservoir scored a catalog-acquisition agreement with the estate of Billy Strange, including interests in Elvis Presley’s “A Little Less Conversation,” “Memories,” and more. Meanwhile, after posting a calendar Q2 revenue increase to close out July, the publishing home of Joe Walsh in August delivered an investor presentation at its annual shareholder meeting.

Per that resource, The Isley Brothers’ “It’s Your Thing” topped Reservoir’s list of top-10 works by net publisher share during calendar 2023, followed by the same group’s “Shout,” Labelle’s “Lady Marmalade,” John Denver’s “Take Me Home, Country Roads,” and then Johnny Cash’s “Ring of Fire,” respectively.

And on the recording side, in keeping with the company’s previously mentioned hip-hop presence, first-ranked “Gangsta’s Paradise” by Coolio, Naughty by Nature’s “Hip Hop Hooray,” and J. Cole’s “Middle Child” found spots on Reservoir’s list of top-10 tracks by net label share.

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Range Music Publishing & Universal Music Publishing Group Partner on Global Admin Deal https://www.digitalmusicnews.com/2024/09/23/range-music-publishing-umpg-global-admin-deal/ Mon, 23 Sep 2024 18:32:01 +0000 https://www.digitalmusicnews.com/?p=302054 Range Music Publishing deal with UMPG global admin

Photo Credit: Range Music

Range Music Publishing inks an exclusive global admin deal with Universal Music Publishing Group.

Range Music Publishing, a division of Range Media Partners, has inked an exclusive global administration deal with Universal Music Publishing Group (UMPG), expanding on Range’s existing relationships with Universal Music group’s Capitol Music Group and Virgin Music Group. Range Media Partners is one of the most disruptive new representation businesses in entertainment, with a foothold in music, film, television, production, comedy, and sports, with offices in Los Angeles, New York, and Nashville.

The deal with UMPG comes on the heels of publishing client Sean Cook scoring his tenth straight week at #1 on the Billboard Hot 100 with Shaboozey’s “A Bar Song (Tipsy).” Range Music Publishing launched in 2023 with the goal of building a curated, full-service, boutique music publishing company to take advantage of synergies within the Range ecosystem.

In the past six months, they’ve celebrated five top-charting songs across multiple radio formats and genres, including #1 hits in country, top 40, rhythmic, hot AC, and dance radio, and the longest-running Billboard Hot 100 #1 of 2024. Beyond Cook’s work on “A Bar Song (Tipsy)” and Paul Russell’s “Lil Boo Thang,” Range has also found success with Geoff Warburton (Tyler Hubbard’s “Back Then Right Now,” Luke Bryan’s “But I Got a Beer in My Hand”) and Tyler Dopps (“Young & Foolish” by Loud Luxury featuring Charlieonnafriday).

Range Publishing’s roster includes Cook, Warburton, Luke Grimes, Dylan Gossett, Grant Averill, Tyler Dopps, Two Fresh, Luke Niccoli, Simon Oscroft, and Rudey, the latter six of whom will be included in this new deal. Range Music represents a wide range of talent including Jack Harlow, Shaboozey, Tanya Tucker, Cordae, Pentatonix, Saweetie, Midland, Murda Beatz, PARTYNEXTDOOR, Lauv, Alec Benjamin, Dylan Gossett, MAX, Bazzi, Sean Douglas, Paul Russell, Wondagurl, Russell Dickerson, and more.

“We’re thrilled to be partnering with our friends at UMPG as we build Range Music Publishing and grow our global footprint,” says Range’s Casey Robison, previously co-president and partner of Big Deal Music Group and Executive Vice President, A&R at Hipgnosis Songs Group. “UMPG’s impressive team will help us maximize creative opportunities while providing first class administration for our growing roster of artists and songwriters. We couldn’t be more proud to call UMPG our partners.”

Range Media Partners co-founder and Managing Partner Matt Graham continues, “On behalf of our partnership we are thrilled to be formalizing our longstanding relationship with UMPG. The collaboration ensures greater creative support and administration for our writers, producers, and artists. Together, we are committed to connecting the dots across our myriad of talent as well as the varying facets of our film, TV, sports, and gaming relationships.”

Jennifer Knoepfle, UMPG EVP and Co-Head of A&R, concluded, “In the short time Range has focused on publishing, they have already made a strong impact in the marketplace. Casey, Sam, Matt, and team have a great ethos and vision and we are happy to be their admin partner on current and future endeavors.”

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MLC Fires Back Against Spotify Dismissal Push in Unpaid-Royalties Lawsuit, Doubles Down on Anti-Bundling Arguments https://www.digitalmusicnews.com/2024/09/19/mlc-spotify-lawsuit-royalties/ https://www.digitalmusicnews.com/2024/09/19/mlc-spotify-lawsuit-royalties/#comments Thu, 19 Sep 2024 19:45:12 +0000 https://www.digitalmusicnews.com/?p=301711 The MLC audits major DSPs

Photo Credit: The MLC

At August’s end, Spotify moved to dismiss the “nonsensical” unpaid-royalties lawsuit filed against it by the Mechanical Licensing Collective. Now, the MLC is urging the court to reject that motion and allow the case to proceed.

The MLC just recently took aim at Spotify’s dismissal push, with roughly four months having passed since the initial complaint’s submission. As many know, said complaint centers on the streaming giant’s controversial bundling reclassifications in the U.S.

Stated concisely, while the current presence of an audiobook and music “bundle,” a standalone music tier, and an audiobook-only option might not seem like too big a deal to listeners, the subscription framework is having a massive impact on Spotify’s domestic mechanical royalty payments.

Once again in the interest of brevity, that’s because bundled subscription revenue is treated far differently than standalone subscription revenue under the Phonorecords IV determination (which runs through 2027) for on-demand streaming.

DMN Pro has performed multiple deep-dives into the involved calculations and also maintains a one-stop database of leading platforms’ per-stream mechanical rates in the U.S.

Long story short, nearly all the existing Spotify Individual subscriptions were simply reclassified in royalty statements as bundles. Per the MLC, the audio (and video) service looks to be saving somewhere in the ballpark of $150 million in domestic compositional royalties per year.

(In the MLC’s own words, that amounts to a “devastating financial impact on the music creators who are the lifeblood of Spotify’s multibillion-dollar business.”)

Predictably, the reality isn’t sitting right with publishers or, as demonstrated by the ongoing legal battle, the MLC. As laid out by the Copyright Office-designated organization, for reasons including audiobooks’ “token” value to subscribers, the packages at hand don’t constitute bundles under Section 115.

And among other things, that means Spotify allegedly owes millions in unpaid mechanicals. On the opposite side of the dispute, though, the Daniel Ek-led company believes audiobooks have more than token value, represent a distinct product tier, and are therefore eligible for bundling classification.

Taking its stance a step further in last month’s dismissal motion, Spotify drove home the view that the timing of audiobooks’ integration (November of 2023, well before the official bundling reclassifications in March of 2024), the accessibility of the audiobook-only tier (which the MLC says is difficult to locate and not distinct from the music package), and more are all irrelevant to the central bundling-eligibility debate.

Returning to the MLC’s opposition to Spotify’s dismissal motion, the over 30-page legal text doesn’t break much new ground in terms of the core unpaid-royalties arguments described above.

However, the document does make clear the MLC’s belief that these arguments are valid and that dismissal would be inappropriate at this stage in any event.

“Spotify may ultimately try to persuade the Court to ignore its inconsistent reporting of the same Premium offering,” the filing indicates, “but a motion to dismiss is not the appropriate vehicle for it to do so.

“The only question at this preliminary stage,” reads another relevant section, “under this well-established Second Circuit law, is whether the Complaint states a claim for relief that is plausible, liberally construing and accepting all of its factual allegations as true, and drawing all reasonable inferences in the MLC’s favor. The Complaint plainly satisfies this test.”

It perhaps goes without saying, but it’ll be interesting to see whether the high-stakes lawsuit survives dismissal here. Closer to the present, we aren’t without other examples of the seemingly far-from-optimal professional relationship between Spotify and the MLC.

Accepting as fact Spotify’s representations and details from a recent streaming-fraud indictment, the company promptly identified and put a stop to an alleged fake-stream scheme – at least on its own service. The MLC, not Spotify competitors, seems to have only pinpointed the same alleged operation years down the line, after it had racked up millions in royalty payments from bot-powered plays on different platforms.

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Downtown Music Publishing Signs Iconic Italian Singer, Mina https://www.digitalmusicnews.com/2024/09/12/downtown-music-publishing-signs-iconic-italian-singer-mina/ Thu, 12 Sep 2024 18:07:21 +0000 https://www.digitalmusicnews.com/?p=301133 Downtown Music Publishing Mina

Photo Credit: Mina

Downtown Music Publishing has announced a global music publishing deal with PDU, the record label and publishing company from iconic Italian singer Mina.

Under this new agreement, Downtown Music Publishing will provide global publishing administration and sync services for Mina’s catalog. With more than 150 million records sold worldwide, Mina’s impact on culture has been both profound and far-reaching.

Her songs have been the soundtrack to Italian life for generations and she remains the only artist to have released a number one hit in the Italian charts for seven consecutive decades. Despite not appearing in concerts or making public appearances for more than 30 years, Mina’s music continues to captivate audiences.

The new deal will see Downtown Music Publishing represent Mina’s extensive body of work via her imprint and publishing company, PDU. Her catalog comprises over 80 LPs and 1,395 songs, performed in multiple languages and dialects including Italian, English, Spanish, Neapolitan, French, German, Portuguese, Latin, Japanese, and Turkish. PDU’s catalog includes more than 400 songs from 1980 onwards, with Downtown Music Publishing also representing Mina’s forthcoming album set to be released in November 2024.

Mina is an extraordinary musician and performer who can master different genres of music,” says Massimiliano Pani, President of PDU Music & Production. “The PDU catalog is a source of true classics that have been top hits in Italy but are yet to be as known globally. We are glad that Downtown Music Publishing has decided to take on this challenge and we look forward to working together on this innovative project for the international publishing market.”

Dubbed ‘The Greatest Singer in the World’ by Louis Armstrong, Mina’s music has also been covered and sampled by some of the most revered singers in history including Frank Sinatra, Shirley Bassey, Elvis Costello, and Róisin Murphy to name just a few.

“It’s an honor to work with such an iconic, pioneering artist and to be trusted with Mina’s influential body of work,” adds Downtown Music Publishing President, Emily Stephenson. “We are delighted to bring our global expertise to her legendary catalog, to make sure that her music continues to inspire and captivate listeners around the world for generations to come.”

“Mina has long been a celebrated, iconic artist who’s impact on music and culture across the world will last for generations to come,” adds Laura Bedikian, Senior A&R Manager, Downtown Music Publishing. “We are proud to represent such extraordinary work and to be able to bring legendary European catalog to Downtown Music Publishing.”

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Major Music Publishers Fire Back Against Anthropic Dismissal Motion in High-Stakes Infringement Dispute https://www.digitalmusicnews.com/2024/09/09/music-publishers-anthropic-lawsuit-dismissal-motion/ Tue, 10 Sep 2024 00:24:36 +0000 https://www.digitalmusicnews.com/?p=300882 anthropic ai

Photo Credit: Igor Omilaev

A little over a month out from the one-year anniversary of its start, the copyright suit levied by major music publishers against Anthropic is heating up amid the AI giant’s renewed push for dismissal.

That push, music publisher plaintiffs including Concord and UMPG emphasized in their latest filing, actually marks the second attempt by Anthropic to dismiss the high-stakes case. As many know by now, the courtroom confrontation centers on alleged infringement stemming from the training process behind Anthropic’s Claude product.

The filing companies have pointed to the alleged presence of lyrics in the chatbot’s outputs – and claimed, among other things, that the alleged “massive copyright infringement” helps Anthropic to generate revenue and attract users.

Multiple twists and one time-consuming venue change later, Anthropic last month (again) fired back against the publishers’ push for a preliminary injunction blocking the continued use of lyrics in outputs and in future training.

And now, the music publishers themselves are taking the opportunity to refute Anthropic’s latest dismissal arguments as well as the appropriate motion.

Predictably, given the ultra-important case’s plodding nature, this 33-page refutation doesn’t break too much new ground. Instead, the publishers drove home that Anthropic’s dismissal motion is untimely in part because it arrived before a formal answer to the suit.

Running with the latter idea, the plaintiffs indicated that Anthropic had “deliberately contravened the Federal Rules” by ignoring purported warnings about the timing of its answer (or the lack thereof).

In short, the Amazon-backed AI mainstay is working “to gain a litigation advantage by prioritizing resolution” of the dismissal motion without first answering the complaint.

“When Anthropic answers the Complaint,” the publishers spelled out, “it will have to admit facts that it so far refuses to acknowledge directly, including that Anthropic copied Publishers’ lyrics when training Claude and made no effort to remove those lyrics from its training dataset despite its ability to do so.”

And from there, the publishers took aim at Anthropic’s specific dismissal arguments, which are looking to toss each claim save that involving direct infringement.

“Publishers are not required to name and date every instance of direct infringement to state a claim for secondary infringement,” the plaintiffs reiterated in part. “Publishers plausibly allege that Anthropic’s AI models respond to queries from users seeking copyrighted lyrics—including queries from Publishers’ investigators—by delivering those lyrics as requested.

“That allegation, without naming specific infringing users, is sufficient to set forth a valid claim for secondary copyright liability,” they proceeded.

Furthermore, dismissal would be “especially unwarranted” because the plaintiffs have yet to “discover from Anthropic what other third parties have requested from the Claude chatbot or APIs,” per the precedent-heavy legal text.

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Time to Delete the Streaming Mechanical? Here’s a Case for Ditching the Complicated License and Sunsetting the MLC https://www.digitalmusicnews.com/2024/09/09/streaming-mechanical-delete/ https://www.digitalmusicnews.com/2024/09/09/streaming-mechanical-delete/#comments Mon, 09 Sep 2024 13:00:05 +0000 https://www.digitalmusicnews.com/?p=300796 Photo Credit: Tracy Lundgren

‘Only the songwriters suffer in this messed up, inequitable streaming licensing scheme,’ says Jody Dunitz, a former exec at Sony Music Publishing. Here’s her case for nixing the mechanical, sunsetting the MLC, and shifting the action to ASCAP, BMI, SESAC, and other PROs.

This year has featured lots of handwringing about Spotify’s bundling antics and their impact on mechanical royalties.  That revenue is taking a big hit.

But don’t cry for the major publishers who oversee 70% of the revenue-earning songs in the United States.  Their paychecks are secured by the label bosses whose streaming revenue hasn’t lessened one bit.

Only the songwriters suffer in this messed up, inequitable streaming licensing scheme.

Given the labels’ dominance of the negotiating hierarchy, song rights revenue can never top 20% of the finite streaming revenue pot.   Subscriber rate hikes mean the pot gets bigger (which Spotify and the labels love), but the song share of the pot doesn’t change.

Against that reality, direct licensing of mechanicals won’t fix anything.  That’s simply a head fake fantasy promoted by the head of the National Music Publishers’ Association (NMPA), David Israelite.  It runs contrary to all principles of copyright law. Further, the idea that hundreds of publishers would negotiate thousands of songs separately with each streaming service is ridiculous and would crash the whole streaming business. The NMPA knows it, and the labels know it.

But there are actual practical fixes to this problem.

One is to “update” the US Copyright Act to eliminate the fiction that streaming triggers any mechanical royalty at all.

The simplified solution is to codify the position that the only “right” attached to musical compositions in streaming services is the “public performance” right.  (For the history of mechanical licensing in streaming, sink your teeth into this.)

In such a case, ASCAP and BMI (and the other minor PROs) would negotiate the full song royalty on behalf of all publishers and writers, collect 100% of all monies due, and distribute them through their very efficient payment systems. Combining the rights would take them outside the scope of Section 115’s compulsory license applicable to mechanical (reproduction) rights, eliminate the mess that would engulf direct licensing of mechanicals, and achieve Israelite’s purported goal of “market-based” negotiations.

There’s another huge benefit to songwriters if this reform were to prevail.  The songwriters’ share of performance income flows directly to them.  If all streaming revenue connected to songs were deemed “performance” income, the writers’ share would follow and flow directly to them. The publishers, of course, would hate this idea.

They like the fiction of “mechanical income” because it allows them to collect 100% of royalties so designated and use them to recoup writer advances and other costs. They also love the idea that with direct licensing, they could negotiate advances and non-recoupable fees from Spotify – just like the labels. And the best part is they wouldn’t have to share those monies with the writers, just like the labels keep their collected advances and fees from artists.

Publishers love Israelite’s calls for such action.  Songwriters should hate it.

The other option is to force all content stakeholders—labels, publishers, and songwriters—to arbitrate their respective share of the streaming revenue pot in a single hearing.

The most pernicious aspect of the US scheme for licensing streaming rights is that rates are set separately, in disconnected arenas, for each discrete element of streamed music. The labels negotiate the recordings’ rates directly with the streaming services. A government tribunal (under Section 115) sets rates for streaming mechanicals after long, costly hearings punctuated with obtuse testimonies by competing economists. Lastly, rates for performance income are set by yet another negotiation between the PROs with the services. This is nuts.

The content stakeholders know very well that each of them contributes an indispensable part of streamed music. They understand that these disjointed negotiations can never lead to an equitable split of the whole pot.

So why not adopt the standard app store model?

In the app store model, the platform takes a percentage off the top for its costs and profit margin and the content owners split the rest. Let the labels, publishers, and songwriters negotiate their respective shares among themselves. Employ (through clear legislation) the services of an “arbiter” panel to conduct hearings and allocate the content shares.  The federal copyright tribunal empowered under the current Section 115 has a history of accepting negotiated “settlements” to finalize rate procedures. There is precedent for such negotiations.

The only rub in the arbiter plan is that the songwriters, the most beleaguered community in this brawl, have no authentic industry-wide advocate to conduct negotiations for them.

NMPA is not a trusted agent for songwriters. The only viable industry representatives for songwriters are ASCAP and BMI.

Both are explicitly chartered to serve and protect songwriters (as well as publishers). They are well-funded and experienced negotiators. They should declare their allegiance to songwriters and forsake the publishers for this purpose (who can use their true agent, NMPA). In this mess, they should rise to the occasion and confront the label/publisher cabal obstructing royalty parity.

Both roads lead to a prominent role of the PROs. It is time to fix this debacle.

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Federal Judge Pauses Spotify’s Push for Kobalt Damages as Eminem Litigation Fallout Continues https://www.digitalmusicnews.com/2024/09/06/kobalt-spotify-damages-appeal/ Fri, 06 Sep 2024 18:51:12 +0000 https://www.digitalmusicnews.com/?p=300679 spotify kobalt legal battle

A federal judge has granted an appeal request from Kobalt as it faces a push from Spotify to foot a massive damages bill. Photo Credit: Wesley Tingey

With Spotify having scored a victory in a marathon royalties battle against Eminem publisher Eight Mile Style, the presiding judge has temporarily denied the streaming giant’s motion for a massive damages payment from Kobalt.  

Judge Aleta A. Trauger signed the corresponding order today, following a filing in which Kobalt urged the court to reconsider its underlying judgement or, alternatively, pause the damages bill pending appeal. DMN obtained exclusive copies of both legal documents, which have arrived over half a decade after Eight Mile levied the initial complaint.

For some quick background – the convoluted courtroom confrontation is decidedly unsuited for inverted-pyramid writing – that original infringement action named Spotify as the sole defendant, and the Harry Fox Agency was added as a second defendant in a 2020 amended complaint.

Then, Spotify in 2020 targeted Kobalt as a third-party defendant; DMN covered this development and all manner of others in detail. Stated concisely, though, the platform expressed the belief that the underlying allegations lacked merit while also claiming that if anyone should be on the hook for the allegedly due royalties and damages, it was Kobalt.

Fast forward past more than a few twists to mid-August of 2024, when the presiding judge, despite acknowledging that “Spotify’s handling of composer copyrights appears to have been seriously flawed,” partially signed off on the streaming service’s motion for summary judgement (and partially granted Kobalt’s own motion).

Keeping the focus on brass-tacks takeaways in the interest of relative brevity, regarding the terms of Spotify’s 2016 blanket license agreement with Kobalt, the court granted the platform’s summary judgement push for indemnification.

Zeroing in on the definition of “administrator,” the language of the agreement, and a whole lot of related subjects, the judge validated the indemnification clause notwithstanding Kobalt’s opposition.

The latter company, the actual contract spelled out in part, would hold Spotify “‘harmless from any and all third party claims, damages, liabilities, costs and expenses.’” On cue, Spotify filed a (sealed) motion to obtain compensation for a presumably huge legal-fees bill.

“In Spotify’s Motion for Award of Damages (Doc. No. 708),” the court wrote of the sealed motion, “it seeks substantial attorney’s fees, for which it has not submitted itemized attorney time entries, and suggests that the court may find it necessary to rely on a special master if the court seeks such documentation for review.”

Predictably, that expensive-sounding proposal didn’t sit right with Kobalt, which promptly urged the court to reconsider the underlying ruling or, alternatively, certify an interlocutory appeal.

As the third-party defendant sees it, the damages question hinges on the adopted definition of “administer,” and specifically whether the indemnification provision extended to works, like the Eminem compositions, for which Kobalt lacked the stateside authority to issue mechanical licenses.

(In the end, following the expiration of a prior deal, that authority ultimately rested with Bridgeport Music, a distinct publisher “closely associated” with Eight Mile Style, per the court’s order on the summary judgement motions.)

“Does the 2016 BMLA [blanket mechanical licensing agreement] require Kobalt to indemnify Spotify for Kobalt’s failure to license a composition over which it lacked U.S. mechanical licensing authority,” Judge Trauger summed up of the central question at play, “but over which it exercised other rights associated with administration, such as non-U.S. mechanical licensing, worldwide synch licensing (subject to publisher approval), and acceptance of license requests?”

Furthermore, it’d “be in the interests of justice and efficiency to allow the question of liability on those claims” – meaning those on which Spotify prevailed over Kobalt – “to be appealed alongside the other issues in this case,” Judge Trauger wrote.

Consequently, setting the stage for this appeal, the court also ordered judgement to be officially entered on all claims save those in favor of Spotify against Kobalt.

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The Cars Classics Get Another Spin — Primary Wave Inks Broad-Reaching Deal with Ric Ocasek Estate https://www.digitalmusicnews.com/2024/09/05/primary-wave-ric-ocasek-estate-deal/ Thu, 05 Sep 2024 20:35:06 +0000 https://www.digitalmusicnews.com/?p=300569 Primary Wave Ric Ocasek

Photo Credit: Gus Stewart for Getty Images (Redferns Collection) / Primary Wave

Primary Wave Music inks a partnership with the estate of The Cars’ Ric Ocasek, which includes his publishing catalog from his time with the band.

The Estate of Ric Ocasek and Primary Wave Music have announced their new partnership, with terms of the deal seeing the publishing giant partner with Ocasek’s estate on the artist’s publishing catalog. This includes all songs from his time with The Cars as a cultural innovator and driving force of the band, in addition to his music released as a solo artist.

In this new partnership, Primary Wave will now share in name, image, and likeness rights with the state, and will provide access to the company’s marketing team and publishing infrastructure, working closely on new marketing, branding, digital, and sync opportunities, as well as TV and film projects.

“It is an absolute honor to partner with the Estate of Ric Ocasek,” said Adam Lowenberg, Primary Wave’s Chief Marketing Officer. “His words, music, and overall vision left such an indelible mark on the historical music landscape. I cannot imagine my own youth without the songs of Ric Ocasek. We are so eager to begin creating new opportunities to introduce Ric’s world to a whole new audience.”

Over the course of his five-plus decade career, Ocasek sold over 20 million records with The Cars and had over ten Top 40 hits. The band was nominated for six Grammys, including Best New Artist in 1979, and were inducted into the Rock and Roll Hall of Fame in 2018. Ocasek was the primary vocalist and songwriter for the band, writing some of their biggest hits, including the critically acclaimed singles, “My Best Friend’s Girl,” “Let the Good Times Roll,” and “Let’s Go.” Each of those songs are included in the multi-million-dollar deal, as well as their hit, “Drive,” which was the band’s highest charting single.

Other gems from the catalog included in the partnership are the hits “You Might Think” and “Just What I Needed,” the former of which was the first single off the band’s fifth album, and which shot to the Top 10 on the Billboard 100. The accompanying music video was a huge hit, and one of the first music videos to use computer graphics.

Released in 1978, “Just What I Needed” was the first single off The Cars’ debut album and was the most successful single from the release. The track has become praised by fans and critics alike, with Rolling Stone including it on their “500 Greatest Songs of All Time” list. The song influenced Weezer frontman Rivers Cuomo to select Ocasek to be the producer for the band’s debut. His reputation as a producer developed, and he found himself working with other bands like Bad Religion and No Doubt.

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How Serious Is the U.S. Streaming Slowdown? Here’s What the Last 10 Years of Industry Data Tells Us https://www.digitalmusicnews.com/pro/streaming-slowdown-10-years-data-weekly/ https://www.digitalmusicnews.com/pro/streaming-slowdown-10-years-data-weekly/#respond Thu, 05 Sep 2024 05:00:14 +0000 https://www.digitalmusicnews.com/?post_type=dmn_pro&p=300415 Total US paid on-demand music subscriptions, mid-year 2014 through mid-year 2024 (source: RIAA data shared with Digital Music News)

Total US paid on-demand music subscriptions, mid-year 2014 through mid-year 2024 (source: RIAA data shared with Digital Music News)

For 2024’s opening half, the RIAA reported that U.S. on-demand streaming subscriptions had grown by a modest 2.7% year over year (YoY) as subscription revenue increased by 5.1%. Amid discussions about the slowdown, what does historical data tell us?

Beginning with total paid accounts, the figures disclosed in RIAA half- and full-year reports during the past decade underscore the breakneck growth at hand. Simultaneously, based on the seldom-compiled numbers, the case can be made that growth has been tapering for some time.

Report Table of Contents

I. Introduction: A Recap of the U.S. Recorded Music Market’s Streaming Deceleration

II. U.S. Subscription Streaming’s Significant Growth — and More Recent Slowdown — Between 2014 and 2024

Graph: U.S. On-Demand Streaming Subscriptions, 2014-2024

Graph: U.S. On-Demand Streaming Subscription Accounts Growth, 2014-2024

III. The Domestic Streaming Market and a Growing Focus on Revenue: How Much Are Fans Willing to Pay for Music?

Graph: U.S. On-Demand Streaming Subscription Revenue, 2014-2024

Graph: U.S. On-Demand Streaming’s Subscription Revenue Growth, 2014-2024

IV. The Freemium Wildcard — Will Ad-Supported Listening Drive the Next Phase of Streaming Growth?

Graph: U.S. On-Demand Ad-Supported Streaming Revenue At Mid-Year, 2014-2024

Graph: U.S. On-Demand Streaming’s Ad-Supported Revenue Growth, 2014-2024

 

The following report is for DMN Pro subscribers only. Please do not redistribute without prior permission — thank you!


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Mechanical Per-Stream Payouts Ranked (US): Spotify, Apple Music, Amazon Music, YouTube Music, More https://www.digitalmusicnews.com/pro/mechanical-per-subscrriber-payouts-ranked/ https://www.digitalmusicnews.com/pro/mechanical-per-subscrriber-payouts-ranked/#respond Wed, 04 Sep 2024 10:13:22 +0000 https://www.digitalmusicnews.com/?post_type=dmn_pro&p=300293

US-Based Mechanical Per-Stream Payouts Ranked: Spotify, Apple Music, Amazon Music, YouTube Music, More

New! A ranking of per-stream mechanical licensing royalty payments by DSP platform, including the ‘big four’ streamers Spotify, Apple Music, Amazon Music, and YouTube Music.

wdt_ID wdt_created_by wdt_created_at wdt_last_edited_by wdt_last_edited_at Platform (DSP) Total Subscribers¹ Payable Mechanical Royalty Pool² Mechanical Payout Per Stream³
3 presnikoff 07/11/2024 03:38 PM presnikoff 09/04/2024 12:30 PM Spotify 53,619,180 26,366,055 0.0004
4 presnikoff 07/11/2024 03:38 PM presnikoff 09/03/2024 06:01 PM Apple Music 52,752,045 29,401,808 0.0008
5 presnikoff 07/11/2024 03:38 PM presnikoff 09/04/2024 11:30 AM Amazon Music 32,039,385 13,277,437 0.0013
6 presnikoff 07/11/2024 03:41 PM presnikoff 09/04/2024 05:03 PM YouTube Music⁴ 9,245,097 9,805,446 0.0006
17 presnikoff 09/03/2024 04:52 PM presnikoff 09/04/2024 12:34 PM Pandora 2,638,935 3,828,899 0.0007
18 mding 09/18/2024 07:18 PM mding 09/19/2024 01:08 AM Tidal 91,729,950 636,953 0.0010
19 mding 09/18/2024 07:23 PM mding 09/19/2024 01:09 AM Soundcloud 462,279 909,448 0.0008
Platform (DSP) Total Subscribers¹ Payable Mechanical Royalty Pool² Mechanical Payout Per Stream³


Important Notes on Data Sources and Methodology.

[1] Subscriber data based on April, 2024 mechanical licensing statements from the Mechanical Licensing Collective (MLC), as shared with Digital Music News by a major music publishing conglomerate. These figures involved DMN Pro multipliers on various base subscription accounts to estimate the actual number of active subscribers. These multipliers are: 1x for Individual Plans; 2x for Duo Plans (Spotify is currently the only DSP offering a two-person plan);  3x for Family Plans, and 0.5x for Student plans. Note that the MLC applies a 1.75x multiplier to all group plans, and a 0.5x multiplier for Student plans.

[2] Total figures for April, 2024, as calculated by the MLC.

[3] Per-stream calculations involve a simple calculation: the Total Payable Mechanical Royalty Pool for each platform for the month divided by the total tracked streams (‘plays’) on the same platform for that month.

[4] YouTube Music figures are for February, 2024, but will be updated shortly to match other April, 2024 figures.

 

 

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Reservoir Acquires Billy Strange Publishing Rights — Hits Include Elvis’ ‘A Little Less Conversation’ https://www.digitalmusicnews.com/2024/09/03/reservoir-acquires-billy-strange-publishing-rights/ Tue, 03 Sep 2024 19:17:24 +0000 https://www.digitalmusicnews.com/?p=300225 Reservoir acquires publishing rights to Billy strange catalog

Photo Credit: Reservoir Media

Reservoir Media has announced the acquisition of the publishing rights to the catalog of late singer-songwriter Billy Strange. The deal includes hit songs such as Elvis Presley’s “A Little Less Conversation,” “Memories,” and “Clean Up Your Own Back Yard.”

Billy Strange began his career in music as a session guitarist in the 1950s before making a name for himself as a songwriter and arranger. He frequently collaborated on hits for Elvis Presley, including the theme song from the 1969 American western film ‘Charro!’ in which Presley stars.

The song “A Little Less Conversation” originally appeared in the 1968 film ‘Live a Little, Love a Little,’ which also starred Presley and for which Strange also composed the musical soundtrack. In 2001, the song was used in the heist film, ‘Ocean’s Eleven’ inspiring a remix by Dutch musician Junkie XL. “A Little Less Conversation — JXL Radio Edit Remix” was officially released in 2002, becoming a worldwide hit that topped the singles charts in nine countries—including spending four consecutive weeks at #1 in the U.K.

As a composer, Strange also worked on the musical soundtrack for the 1969 Elvis film, ‘The Trouble with Girls.’ That film featured the hit song, “Clean Up Your Own Backyard.” Strange also co-wrote “Limbo Rock,” recorded by The Champs and Chubby Checker, which reached #2 on the Hot 100. In addition to the work as a songwriter, Strange played guitar with several major acts including the Beach Boys, Nancy Sinatra, Willie Nelson, Randy Newman, and Nat King Cole.

Strange can also be heard playing for several television theme songs from the 50s and 60s including ‘The Munsters’ (1964), ‘Batman’ (1966), and ‘Have Gun — Will Travel’ (1957). Strange also arranged and conducted several Nancy Sinatra albums, including arranging her single “These Boots Are Made for Walkin,” which reached #1 on the Billboard Hot 100 chart and UK Singles chart. Strange was inducted into the Musicians Hall of Fame as a member of The Wrecking Crew in 2007.

“Billy Strange’s influence is woven into the fabric of American pop culture. ‘A Little Less Conversation’ is one of the most recognizable songs and has influenced popular music since Elvis first sang it in 1968. We are honored to have Strange’s music in our catalog and amplify the mark he left on the world,” adds Reservoir President & COO Rell Lafargue about the acquisition.

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Is Warner Music Really Achieving ‘Strong Subscription Streaming Growth’? We Crunched the Numbers to Find Out https://www.digitalmusicnews.com/pro/wmg-streaming-growth-2024-weekly/ https://www.digitalmusicnews.com/pro/wmg-streaming-growth-2024-weekly/#respond Thu, 29 Aug 2024 04:15:15 +0000 https://www.digitalmusicnews.com/?post_type=dmn_pro&p=299679 Warner Music Group consolidated quarterly streaming revenues (source: WMG 10-Q disclosures)

Warner Music Group consolidated quarterly streaming revenues (source: WMG 10-Q disclosures)

For Universal Music Group and Warner Music Group, calendar Q2 2024 was a tale of two earnings reports — and streaming forecasts. While UMG acknowledged a subscription-growth slowdown, the Robert Kyncl-led WMG emphasized “strong” improvements. But are things as rosy as they seem for today’s third-largest major label?

DMN Pro crunched the numbers to answer that question, which is particularly pressing given the industry-wide implications of a growth slowdown at UMG.

Table of Contents

I. Introduction: The Stark Contrast Between the Calendar Q2 Earnings Reports of Warner Music Group and Universal Music Group

II. Warner Music Group’s Streaming Performance by the Numbers: Reported Revenue from Q4 2021 Through Q2 2024

Graph: Warner Music Group Consolidated Recorded and Publishing Streaming Revenue by Quarter

III. Warner Music Group’s Recorded and Publishing Streaming Showing At a Glance: Are Things Truly Looking Up?

Graph: WMG Recorded Music Subscription Revenue

Graph: WMG Publishing Streaming Revenue, Subscription and Ad-Supported

IV. The Bottom Line: WMG’s Streaming Growth Strength and Where the Space Is Heading

Please do not redistribute this report without permission. Thank you for subscribing to DMN Pro!


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Primary Wave Acquires Chuck Mangione Music Publishing Rights — Including Writer’s Share and Neighboring Rights https://www.digitalmusicnews.com/2024/08/22/primary-wave-chuck-mangione-publishing-rights/ Thu, 22 Aug 2024 19:13:16 +0000 https://www.digitalmusicnews.com/?p=299132 Chuck Mangione primary wave

Photo Credit: Chuck Mangione by Shellie Crandall

Primary Wave acquires the publishing rights of legendary composer and horn player Chuck Mangione, including his writer’s share and neighboring rights.

Leading independent publisher Primary Wave has announced a partnership with iconic composer, flugelhorn, and trumpet player Chuck Mangione. This new partnership sees the publisher gain Mangione’s music publishing and other music rights, including his writer’s share, artist royalties, and neighboring rights.

The deal encompasses Mangione’s entire repertoire across his incomparable career. Terms of the deal will also give Mangione access to the company’s marketing team and publishing infrastructure, working closely on new marketing, branding, digital, and synch opportunities, as well as film and television projects.

During his five-plus decades in music, Chuck released over 30 albums. Included in the deal are the jazz sensation’s biggest hits, such as “Feels So Good,” “Bellavia,” “Land of Make Believe,” “Give It All You Got, But Slowly,” “Children of Sanchez,” “Once Upon A Love Time,” “Chase The Clouds Away,” and more.

Mangione was nominated for an astounding 14 Grammy Awards, winning two for Best Instrumental Composition in 1976 for “Bellavia,” and then again for Best Pop Instrumental Performance in 1979 for “Children of Sanchez.” That year, his biggest hit, “Feels So Good,” was also nominated for Record of the Year. The single was the title track from his 1977 jazz release and soared to the Top 5 on the US charts.

“I am really thrilled to join the roster of iconic artists who are represented by Primary Wave,” said Mangione. “It makes me ‘Feel So Good’ to join the company of such great artists and musicians.”

“We could not be happier to welcome Chuck Mangione to the Primary Wave family,” added Lexi Todd, Primary Wave’s Vice President, Business & Legal Affairs. “To this day, Chuck’s music feels like a breath of fresh air, and we are thrilled to have the opportunity to continue to breathe new life into these timeless tunes. Chuck’s awards and accolades speak for themselves — he is a true master of his craft, and an incredible addition to our roster of legends.”

In addition to his music, Chuck Mangione made appearances in several television shows, including as an animated version of himself on “King of the Hill.” He appeared on several episodes, and his initial appearance even featured a score recorded specifically for the occasion.

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James Fauntleroy Sells Publishing Catalog Stake to HarbourView Equity Partners https://www.digitalmusicnews.com/2024/08/21/james-fauntleroy-harbourview-catalog-deal/ Wed, 21 Aug 2024 17:14:26 +0000 https://www.digitalmusicnews.com/?p=299018 james fauntleroy

James Fauntleroy, who’s sold a publishing catalog interest to HarbourView. Photo Credit: Gizelle Hernandez

HarbourView Equity Partners has taken a stake in the publishing catalog of Mariah Carey and SZA songwriter James Fauntleroy.

Newark-headquartered HarbourView reached out with word of the deal for the music IP of Inglewood-born James Fauntleroy. Said IP refers to “select publishing assets” here, though neither the catalog investor nor the selling party opted to shed light on the exact involved rights.

However, 40-year-old Fauntleroy has penned works recorded by Bruno Mars (“That’s What I Like” and the more recent “Die With a Smile”), Kelly Clarkson (“Einstein”), Rihanna (“Te Amo”), Snoop Dogg (“California Roll”), Cardi B (“Please Me”), Drake (“Finesse”), Justin Timberlake (a number of tracks across The 20/20 Experience and its follow-up), and Beyoncé (“Blow” and “No Angel”), to name just some.

Similarly, HarbourView didn’t publicly reveal the financial terms behind the transaction, but did take the opportunity to note that its overall catalog encompasses north of 29,000 songs between the compositional and recordings sides. Additionally, CEO Sherrese Clarke Soares in a statement touted the career accomplishments of the four-time Grammy winner Fauntleroy.

“James Fauntleroy has made an incredible impact with his contributions across several genres, including Pop, Hip-Hop and R&B,” relayed the HarbourView head. “With a keen ear for creating global hits, he has solidified his position as one of the best singer/songwriters and producers of this generation. We are excited to welcome him to the HarbourView family.”

Meanwhile, the Kingship executive producer Fauntleroy expressed the belief that the sale is opening up new career doors.

“My catalog sale to HarbourView is the culmination of years of work and dedication invested into the creative community and the craft of songwriting,” communicated the 1500 Sound Academy co-founder. “This partnership has already opened up more doors for growth and opportunity for me, and I’m incredibly excited and thankful to enter into this next chapter together.”

All told, HarbourView has since its 2021 debut scored IP deals involving the work of Luis Fonsi, Brad Paisley, Lady A, Blackbear, Christine McVie, and more recently Noel Zancanella. The company, which secured “close to $500 million” in KKR royalties-backed debt financing in March, announced the pact with Zancanella last week.

Despite the other plays (attributable to the likes of Iconoclast and Primary Wave) that have wrapped in the music IP sub-sector as of late, headlines haven’t been entirely positive. In a move that will hardly inspire confidence among prospective catalog sellers, Hipgnosis, having bought Barry Manilow’s work back in 2020, is reportedly suing the singer-songwriter across the pond over a bonus-payments disagreement.

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Primary Wave Acquires Bruce Springsteen Producer Jon Landau’s Song Rights: ‘An Influential Figure in Music’ https://www.digitalmusicnews.com/2024/08/15/primary-wave-jon-landau-deal/ Thu, 15 Aug 2024 23:09:06 +0000 https://www.digitalmusicnews.com/?p=298588 jon landau primary wave deal

Producer Jon Landau (pictured) has finalized a song-rights deal with Primary Wave. Photo Credit: Primary Wave

Primary Wave has officially invested in the IP of veteran manager and Bruce Springsteen producer Jon Landau.

New York City-based Primary Wave and 77-year-old Landau (not to be confused with the Avatar producer of the same name) reached out with word of the purchase. Extending specifically to “producer royalties and neighboring rights royalties,” the deal includes Landau’s work with Jackson Browne and Bruce Springsteen.

Regarding the latter professional (who’s already coming up on the third anniversary of his catalog sale to Sony Music), Landau has production credits on several Springsteen albums, chief among them 1975’s Born to Run and 1984’s Born in the U.S.A.

Additionally, the all-encompassing agreement extends to Landau’s production work with MC5 (1970’s Back in the USA), Livingston Taylor (an eponymous 1970 debut and the 1971 follow-up Liv), the aforementioned Browne (1976’s The Pretender), and more.

The involved parties opted against publicly disclosing the financials behind the transaction, which was “facilitated” by David Simone and Winston Simone of DSW Entertainment. (DSW’s clients include E Street Band mainstay Little Steven, himself a producer on Born in the U.S.A. and other Springsteen efforts.)

However, Landau in a statement made clear a goal of maintaining a working relationship with Primary Wave.

“I thank all at Primary Wave for recognizing my contributions over the last fifty years and look forward to having an ongoing and productive relationship with them,” said the former Rock Hall of Fame Nominating Committee chair.

And in remarks of his own, Primary Wave global sync president Marty Silverstone touted Landau’s influence and career accomplishments.

“We’re honored to be partnering with Jon Landau and all of the legendary music he helped shape. He’s an influential figure in music, and we’re proud to welcome him to the Primary Wave family,” communicated the Primary Wave exec of nearly 15 years.

Notwithstanding the transaction-volume slowdown hitting the wider IP-acquisition space, Primary Wave has closed a number of investments on the year.

During the past month and change alone, those plays have included a “multi-million-dollar” partnership with Toto founding member Steve Porcaro as well as an investment in the writer and producer shares of “Don’t You (Forget About Me)” producer-songwriter Keith Forsey.

Furthermore, as compiled by DMN Pro’s Music IP Acquisition Tracker, among the other catalog investments wrapped during August’s opening half are Reach Music Publishing’s deal with Wyatt Durrette and HarbourView Equity Partners’ pact with Noel Zancanella.

But the sub-sector hasn’t been without not-so-positive headlines this month, as Hipgnosis, we reported yesterday, is suing Barry Manilow over a contractual dispute. Concrete details about the High Court action are difficult to come by at present.

Nevertheless, it goes without saying that the litigation, set in motion more than four years after Manilow sold his work, may make others think twice about exploring deals with Hipgnosis.

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Iconoclast Kicks Off Reggae-Focused Partnership With Half Pint Catalog Acquisition, Eyes Other ‘Culturally Significant’ IP https://www.digitalmusicnews.com/2024/08/13/iconoclast-half-pint-catalog-deal/ Tue, 13 Aug 2024 21:05:42 +0000 https://www.digitalmusicnews.com/?p=298306 iconoclast half pint catalog deal

A live performance from Half Pint, who’s sold a portion of his IP to Iconoclast. Photo Credit: Peter Verwimp

Iconoclast is officially acquiring select IP from “culturally significant reggae artists,” beginning with the work of Half Pint.

The purchasing party just recently reached out with word of the deal, which came to fruition under a partnership with Ujama Designs. Founded by Robert Oyugi, the latter company operates in publishing, recording, live, and other areas across genres including but not limited to reggae.

Now, Ujama Designs, the Ujama News subsidiary of which produces Boulder’s Soul Rebel Festival, says it’s poised to leverage that experience by helping connect Iconoclast with the aforementioned “culturally significant” works.

First up is the IP – referring specifically to publishing and NIL rights – of the “legendary” Half Pint (real name Lindon Andrew Roberts). Among the Kingston-born singer’s works are “Greetings,” “Crazy Girl,” “Mr. Landlord,” “Substitute Lover,” and “Winsome,” to name a few.

While Iconoclast opted against disclosing the agreement’s price tag in its release and when contacted by DMN, founder Olivier Chastan drove home his broader plans to help reggae find new fans on the world stage.

“Working with Robert allows me to reconnect with my long history and passion for Reggae music that started 20 years ago when I worked at VP Records and acquired Greensleeves Publishing,” communicated Chastan, whose company this past March bought Tony Bennett’s catalog and NIL rights.

“Thanks to our partnership with Robert Oyugi and my personal experience,” proceeded the Iconic Artists Group founder, “we hope to further expand into the genre and help Reggae artists in and outside of Jamaica reach a wider audience. I could not ask for a better start than working with Half Pint!”

62-year-old Half Pint, who had been set to perform at the Sierra Nevada World Music Festival in June until the reggae event was shelved “due to extreme financial challenges,” didn’t provide a statement. But Oyugi touted the tie-up between Iconoclast and his own company as “a perfect match for success.”

Iconoclast’s Half Pint IP purchase marks the second catalog deal to this point in August (the other being Reach Music Publishing’s play for a portion of Wyatt Durrette’s work). Overall, however, against the backdrop of an uncertain economy, the end of the Hipgnosis saga, and other factors, IP transactions have been comparatively rare in recent months.

As monitored by DMN Pro’s Music IP Acquisition Tracker, only eight catalog sales have wrapped across May’s start and today. Last year, May alone came close to matching that number (including a deal involving Iconoclast and Major Lazer founder Dave Taylor), and the overall stretch brought north of 30 agreements.

Notwithstanding the material volume slowdown, interest and massive piles of cash seemingly remain available for especially high-profile IP, including the works of Michael Jackson, Queen, and Calvin Harris.

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Reach Acquires Hitmaker Wyatt Durrette Publishing and Songwriter Rights, Including Zac Brown Band and Luke Combs Hits https://www.digitalmusicnews.com/2024/08/12/reach-acquires-wyatt-durrette-publishing-songwriter-rights/ Mon, 12 Aug 2024 19:55:27 +0000 https://www.digitalmusicnews.com/?p=298217 Wyatt Durrette

Photo Credit: Wyatt Durrette by Brooke Stevens Photography

Reach Music acquires the publishing and songwriting rights of Wyatt Durrette, including hits from Zac Brown Band and Luke Combs.

Reach Music Publishing has acquired select publishing and songwriting assets from Wyatt Durrette, including the songwriter’s interest in songs co-written with Zac Brown and Luke Combs.

According to Michael Closter, President, Founder, and Owner of Reach Music, the acquisition includes interests in 29 of Durrette’s compositions, as well as global administration rights for its shares of those rights. The copyrights include Durrette’s interest in songs he co-wrote with Zac Brown, including “Chicken Fried,” “Toes,” and “Whatever It Is,” by Zac Brown Band.

Besides Zac Brown, Durrette has written with Luke Combs, including the hit single “Beautiful Crazy,” which has been certified 10x Platinum (Diamond) by the RIAA. This song is also included in the Reach acquisition.

Richard Blackstone of Blackstone Entertainment, Wyatt’s longtime publisher, will remain his publisher and co-administer together with Reach Music for the select songs that are part of the deal.

“This is a thrilling moment to have concluded an acquisition agreement with Wyatt Durrette, an A-level award winning songwriter,” said Closter. “Reach Music has been the publishing administrator for Zac Brown for 12 years, and we’ve always been familiar with Wyatt Durrette and his incredible works with Zac Brown Band, starting with ‘Chicken Fried,’ as well as his more recent works with Luke Combs. This marks Reach’s largest acqusition in the country space, and we couldn’t be more excited than to have done this deal with Wyatt.”

Reach’s agreement with Wyatt Durrette comes shortly after other acquisitions by the company of classic catalogs in other genres, including recent copyright acquisitions for Judas Priest, as well as Public Enemy’s Chuck D.

Wyatt Durrette was represented in the transaction by Adam Ritholz and John Brill of Ritholz Levy Fields LLP. Reach Music was represented in the transaction by Jeff Sacharow of The Sacharow Firm, P.C.

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Downtown Music Publishing Signs Peso Pluma’s Double P Records https://www.digitalmusicnews.com/2024/08/07/downtown-music-publishing-peso-pluma-double-p-records/ Wed, 07 Aug 2024 21:15:34 +0000 https://www.digitalmusicnews.com/?p=297802 Peso Pluma Double P Records Downtown publishing deal

Photo Credit: Downtown Music Publishing

Downtown Music Publishing (DMP) has announced a global music publishing agreement with Peso Pluma’s Double P Records. Here’s the latest.

Double P Records was founded by Peso Pluma and George Prajin in April 2023, with this partnership seeing DMP providing full administration and sync placement across Double P Records’ current and future releases. It also encompasses administration for Peso Plum’a own publishing interests, including his latest double album, ÉXODO.

The record label is the home to some of Música Mexicana’s biggest songwriters including Peso Pluma, Jasiel Núñez, Estevan Plazola, and Jesús Roberto Laija García (Tito Double P). Peso Pluma boasts 52 million monthly Spotify listeners, making history as the first Mexican artist to top the ‘Daily Top Artists Mexico’ chart. He is widely known as a leading figure in championing the resurgence of Corridos, a genre that blends traditional Mexican Corridos with modern influences including trap, hip-hop, and reggaeton.

Peso Pluma’s album ÉXODO was the biggest debut by any Mexican artist on Spotify. It received over 29 million streams within the first 24 hours of release, making it the highest first-day streamed album on Apple Music, too. His previous album GÉNESIS also broke streaming records and earned him a Grammy nomination and win for Best Música Mexicana Album in 2024.

“We are looking forward to joining forces with Downtown and continuing to grow our partnership. I am confident t hat together we are going to do great things,” adds George Prajin, CEO, Prajin Parlay Inc. and Co-Founder Double P Records.

“Peso Pluma’s exceptional rise to fame is of great importance to the representation of Música Mexicana artists globally,” adds Jedd Katrancha, Chief Commercial Officer of Downtown Music Publishing. “We’re honored to provide Double P Records with the services and opportunities DMP has to offer across its groundbreaking catalog.”

The announcement follows a period of significant growth and success for Downtown Latin music and Música Mexicana with over 30 Latin Grammy nominations for clients across the group in 2023. Those nominations include Best Tejano Album from FUGA client Freddie Records’ artist, Jay Perez and Best Engineered Album from CD Baby client, Antonio Adolfo.

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Believe Acquires the Remaining 40% of Doğan Music Group for Nearly $42 Million https://www.digitalmusicnews.com/2024/08/07/believe-acquires-dogan-music-group/ Wed, 07 Aug 2024 21:00:43 +0000 https://www.digitalmusicnews.com/?p=297815 Believe Acquires remaining 40% of Dogan Music Group

Photo Credit: Rohan Reddy

After gaining a 60% majority stake in 2020, Believe acquires the remaining 40% of independent Turkish label Doğan Music Company for about $42 million.

One of the world’s leading digital music companies, Believe, has announced it will be acquiring full ownership of Doğan Music Company (DMC), Turkey’s largest independent label, for 38.3 million euros ($42 million). Believe first acquired a 60% majority stake in DMC in 2020, and has now reached an agreement with Doğan Group to acquire the remaining 40%.

With a mission to develop independent artists and labels in the digital space by providing them the necessary solutions to grow their audiences at each stage of development, Believe’s team of worldwide experts leverage the group’s technology platform to advise artists and labels alike, as well as distribute and promote their music. Believe boasts 2,020 employees in over 50 countries, aiming to support independent artists and labels with its unique digital expertise, as well as respect, fairness, and transparency.

DMC has added value to the Turkish economy for 65 years, since Doğan Şikretler Grubu Holding A.Ş. entered the scene in 1959, when Honorary Chairperson Aydın Doğan registered with the Mecidiyeköy Tax Office, and then founded his first automotive company in 1961. Today, the Doğan Group and its companies play a significant and pioneering role with their vision in the fields of electricity generation, industry and trade, automotive trade and marketing, finance and investment, internet and entertainment, and real estate.

Believe’s full acquisition of DMC follows closely on the heels of the group’s acquisition of a 25% stake in Romanian dance label Global Records, pointing to a broader strategic move into global content distribution. The 16-year-old Romanian company already has offices “and activity” in Germany and the United States, and boasts around six billion streams in 2023 across its roster. Believe first partnered with Global back in 2016.

Believe’s other international endeavors include Sentric, South Indian film soundtrack label Think Music, Filipino group Viva Music and Artists, and France’s Jo&Co. The global expansion runs in tandem with Believe’s recent dance-focused launches of b.electronic and All Night Long.

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Too Lost on Why Music Distribution Is More Than Just Moving Your Music From A-to-B — Here’s a Look at Their Diversified Partner Strategy https://www.digitalmusicnews.com/2024/07/31/too-lost-music-distribution-more-than-a-to-b/ Wed, 31 Jul 2024 22:30:45 +0000 https://www.digitalmusicnews.com/?p=297025 Too Lost-distributed artist Ollie Joseph (Photo: Ollie Joseph)

Too Lost-distributed artist Ollie Joseph (Photo: Ollie Joseph)

The music industry isn’t running out of music distributors anytime soon, though Too Lost is differentiating with some interesting innovations —including a deep list of partnerships that include BMG, Easy Song, beatBread, and Delta.

Music distribution is a seriously competitive sub-industry, though a relatively fresh face, Too Lost, is making waves by rethinking the traditional distribution model.

Already, the company is getting good marks from the musician community for solving issues like streaming fraud and enabling artist financing. However, the company is also pushing an expansive partnership strategy designed to offer artists and labels more than just a path to digital service providers (DSPs).

The result: Too Lost is suddenly pushing distribution far beyond the traditional task of shuttling music from A-to-B. With an array of non-traditional partners, the company aims to provide broader opportunities for its artists, with the end game of reaching new and diverse audiences. Just recently, Too Lost partnered with Digital Music News to further expand their growing footprint.

Several notable artists are already on board with Too Lost’s refreshed concept, including Chief Keef, ILoveMakonnen, YG, Xavier Wulf, Lil Mabu, Josiah and the Bonnevilles, Ali Gatie, Lucifer, Joseph Tilly, and Pink Sweats. Also in the Too Lost mix are up-and-coming artists like Ollie Joseph (pictured), who recently crossed 600,000 followers on Spotify.

At this stage of the game, artists can quickly move their music onto Spotify or Apple Music with more than a dozen high-quality distribution platforms.

Against that competitive landscape, Too Lost decided to expand the role of traditional distribution. Too Lost excels in DSP distribution (they are a Spotify Preferred Provider, for example), though they also offer competencies in critical areas like cover licensing, financing, and publishing administration.

Too Lost told Digital Music News they decided against building those competencies from scratch for several reasons. For starters, the ‘wheel has already been invented’ in many critical music industry core competencies, so why not simply partner with the best to rapidly expand the possibilities for its artists?

In the case of cover licensing, that meant brokering a deal with Easy Song. In artist financing, a beatBread deal was inked to enable flexible financing options, enabling Too Lost artists to fund their projects without traditional record deals. For publishing administration, a BMG partnership was brokered. And the list goes on.

“Our partnerships with industry leaders like BMG and beatBread are a testament to Too Lost’s commitment to providing artists with comprehensive tools and resources,” said Damien Ritter, Director of Marketing at Too Lost. “By leveraging these collaborations, we empower artists to focus on their creativity while we handle the complexities of rights management, financing, and content protection.”

Here’s a quick rundown of some of Too Lost’s top partnerships.

Too Lost told us that this is a rapidly-growing list, though these are currently some of their most impactful and essential partnerships.

Easy Song: Simplifies the complex world of song licensing, making it easier for artists to cover songs legally.

Pex: Provides robust content identification and monetization tools.

Cosynd: Offers enhanced IP protections, ensuring artists’ intellectual property is well-guarded.

BMG: Assists with publishing administration and royalty management, freeing artists from the intricacies of managing their publishing rights.

Beatbread: Facilitates flexible financing options, enabling artists to fund their projects without the need for traditional record deals.

Manifest (formerly Nerve): Ensures direct payouts to artists, streamlining the financial aspects of music distribution.

Beyond its core partner alliances, Too Lost is also focusing on non-traditional distribution endpoints.

For most artists, uploading an album to Spotify is akin to pouring water into the Pacific Ocean. Current estimates peg the number of songs uploaded to DSPs at more than 120,000 a day, and AI only worsens the situation.

So, how do you get noticed in such an intimidatingly vast sea of ‘content’? Too Lost says they hear this problem repeatedly, though not every platform is so crowded. Accordingly, the company has partnered with companies like Delta and Peloton to help artists break through.

Delta doesn’t offer an on-demand platform with millions of songs, though they do promote selected songs to captive fliers. The noise floor is suddenly overcome if an artist is chosen for one of the airline’s in-flight entertainment systems.

The same is true for Peloton, whose high-energy workout playlists can make fans out of fitness enthusiasts if the vibe is right. Too Lost also brokered a partnership with Sonu Stream, co-founded by Tokimonsta, which aims to better compensate artists for their streams. These non-traditional partnerships aim to expand the reach of Too Lost’s artists, ensuring that their music can be discovered in unexpected places.

After a relatively short period in the industry, Too Lost has received positive marks from musicians.

Among the biggest fans is Ari Herstand, a respected musician and industry expert who recently proclaimed that “Too Lost is one of the best-kept secrets in the music distribution world.”

“Their commitment to artist autonomy and unmatched administrative support sets them apart from the competition,” Ari gushed.

Too Lost’s top artists are also tapping into the platform’s network of partnerships, with tracks getting financed and popping up on non-traditional playlists. “At Too Lost, we are incredibly proud of the innovative solutions and partnerships we’ve developed to support our artists,” says Ritter. “Our mission is to empower musicians by providing them with the tools and resources they need to succeed in today’s dynamic music industry.”

“At Too Lost, we firmly believe that you can make a serious creative dent and find your fans — but you need the right partners to do it.”

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Downtown Neighbouring Rights Sign Lady Blackbird https://www.digitalmusicnews.com/2024/07/25/downtown-neighbouring-rights-sign-lady-blackbird/ Thu, 25 Jul 2024 19:25:30 +0000 https://www.digitalmusicnews.com/?p=296614 Downtown sign Lady Blackbird

Photo Credit: Christine Schwan

Downtown Neighbouring Rights sign an international deal with Lady Blackbird who joins a roster including Jon Batiste, Justin Bieber, One Republic, and the estates of Ella Fitzgerald, Miles Davis, and Meat Loaf.

Downtown Neighbouring Rights (DNR) has announced a global deal with American Psychedelic Soul singer-songwriter Lady Blackbird. As part of the deal, DNR will represent Lady Blackbird’s catalog, including the singles “Woman,” “Feel It Coming,” and her collaboration with Moby, “Dark Days.”

Lady Blackbird’s 2021 album, Black Acid Soul, produced by Chris Seefried, peaked at No. 6 on the UK Album chart and entered the Official Jazz chart at No. 1, with “Five Feet Tall” accumulating over 4 million streams on Spotify. Her haunting version of Nina Simone’s “Blackbird” has become a civil rights rallying cry in the aftermath of George Floyd.

Winning International Jazz Act of the Year at the 2022 Jazz FM Awards, Lady Blackbird is a sought-after collaborator, featuring on releases with Moby, Trevor Horn, Nitin Sawhney, and Billy Porter, as well as supporting Gregory Porter on his UK tour in 2022.

“I am so excited to be partnering with Downtown in regards to my neighboring rights collections,” said Lady Blackbird. “With my new album, Slang Spirituals, coming out in September, this is going to be such an exciting year. Adding Downtown to my team feels like a perfect fit.”

Downtown Neighbouring Rights will also represent her upcoming second studio album, Slang Spirituals, which is once again produced by her longtime collaborator, Chris Seefried. The first single from the album, “Reborn,” debuted in June.

The news follows a successful start to the year for DNR, who has welcomed a raft of global signings since the beginning of 2024. The company announced international neighboring rights agreements with acclaimed singer-songwriter ANOHNI, representing the singer’s Academy Award-nominated song, “Manta Ray,” and Mercury Prize-winning album, I Am a Bird Now — as well as global agreements with publisher and label Position Music and TH3RD BRAIN Records, home to Brazilian producer Zerb. Zerb’s single “Mwaki” hit No. 1 on Spotify’s Viral 50 Global and No. 2 on Global Shazam charts.

“It has been an exceptional year so far for Downtown Neighbouring Rights as we continue to represent and collect for groundbreaking global artists,” concludes Diane van Beekum-de Mooij, Director of Downtown Neighbouring Rights. “Lady Blackbird is one such example, a highly talented artist, singer, and songwriter; we are proud to represent her lauded catalog and look forward to providing her and her team with our expertise and offering.”

Downtown is the world’s leading music services company, with over 2 million clients from 145 countries representing a catalog of over 38 million music assets in a wide variety of genres and languages. Downtown’s technology and service offerings support creators and businesses in all facets of the music industry, including creation, distribution, publishing, marketing, royalty collection, financing, accounting, and payment services.

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Primary Wave Unveils ‘Multi-Million-Dollar’ Partnership Deal With Toto Founding Member Steve Porcaro https://www.digitalmusicnews.com/2024/07/25/steve-porcaro-primary-wave-deal/ Thu, 25 Jul 2024 16:59:28 +0000 https://www.digitalmusicnews.com/?p=296595 primary wave steve porcaro deal

A live performance from Toto, including founding member Steve Porcaro (second from right), who’s inked a multimillion-dollar deal with Primary Wave. Photo Credit: Maltesen

Primary Wave has finalized a far-reaching partnership, extending to publishing and more, with Toto founding member Steve Porcaro.

New York City-based Primary Wave, which wrapped a reportedly $30 million catalog deal with the estate of Jeff Porcaro about three years ago, just recently disclosed the agreement with Steve Porcaro.

And as described by the company, the “multi-million-dollar deal” encompasses the latter Porcaro’s “music publishing catalog, artist royalties, and neighboring rights.” Beginning with Toto, the pact therefore includes royalty interests in hits like “Hold the Line,” “Africa,” and “Rosanna.”

Additionally, the tie-up features “all songs” composed by Porcaro for film and television; among other projects, the 66-year-old worked on FX’s Justified. More noteworthy yet are stakes in “a select number of compositions purchased jointly with the Estate of Michael Jackson.”

Porcaro co-wrote Jackson’s “Human Nature” (1983), which has racked up nearly 200 million Spotify streams, and performed on several other Thriller tracks.

Elaborating on the complex ownership details at hand, the New York Times specified that the Jackson estate (which is closing a major catalog transaction with Sony Music despite family objections) has “fully acquired” with Primary Wave unreleased Jackson recordings entitled “Chicago 1945” and “Dream Away.”

Porcaro himself will retain a 15 percent piece of his body of work excepting those Jackson vault tracks and “Human Nature,” per the Times, which estimated that the overall deal is worth somewhere in “the low eight figures.”

Addressing the union with Porcaro, who’s in the process of completing a follow-up to 2016’s Someday/Somehow, Primary Wave partner David Weitzman touted the career accomplishments of the Hartford-born musician.

“We are thrilled to welcome Steve Porcaro to the Primary Wave family,” communicated the close to five-year Primary Wave higher-up Weitzman. “His career arc from being a first call touring & session musician, to co-founding Toto, to writing songs with Michael Jackson in his home studio is a story for the ages.”

For Primary Wave, the announcement marks the latest in a line of 2024 agreements and investments. June and July have delivered partnerships between the company and Spin Doctors, Extreme’s Nuno Bettencourt, and Billy Idol producer Keith Forsey.

Meanwhile, the business, reportedly facing hurdles concerning the release of the finished (and long-anticipated) Prince documentary, closed out last month by revealing Will You Still Love Me Tomorrow? The Gerry Goffin Story. Contrasting the reportedly nine-hour film account of Prince’s life, The Gerry Goffin Story will reportedly run about 90 minutes.

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It Pays to Bundle: Spotify Reveals Its Mechanical Savings Amid Intensifying MLC Legal Battle https://www.digitalmusicnews.com/2024/07/25/spotify-bundling-savings/ Thu, 25 Jul 2024 13:37:35 +0000 https://www.digitalmusicnews.com/?p=296663 spotify bundling savings

Spotify has officially disclosed the bundling savings stemming from its much-publicized bundling reclassifications in the U.S. Photo Credit: Mackenzie Marco

It pays to bundle – and that’s according to Spotify itself, which has disclosed the approximate royalty savings it’s enjoying after reclassifying nearly all its U.S. accounts as bundles.

The streaming platform pinpointed the figure in a new regulatory filing, after reporting close to $290 million in Q2 operating income (and experiencing a massive stock-price surge) yesterday. On the bundling front, Spotify abruptly declared its existing packages multi-product offerings in March, citing the availability of both music and audiobooks.

To put it mildly, the move isn’t sitting right with music publishers and the Mechanical Licensing Collective (MLC), which is suing for unpaid royalties in connection with the bundling pivot. As charted in detail by DMN Pro, the streaming service is paying a whole lot less in U.S. mechanicals owing to the way revenue is treated and royalties are calculated under the Phonorecords IV determination.

Now, with the underlying plan reclassifications in full swing, Spotify has identified $49.89 million (€46 million) as the amount, excluding any interest or penalties, that it would be compelled to cough up for March through June if the MLC won the case.

In other words, the total, in line with DMN Pro calculations based on vetted royalty statements, represents the rough amount Spotify has saved from the bundling switch during the relevant four-month stretch.

Though savings vary each month due to the many moving parts at hand, the sum’s average suggests that initial ballpark estimates of nixed U.S. mechanicals were pretty accurate. And the number also provides additional meaningful context to the publishing space’s dispute with Spotify, which is most certainly fighting back against the MLC’s suit.

Despite Spotify’s aggressive defense of its position, a settlement isn’t out of the question; heated industry legal battles have, of course, been resolved in the past. Furthermore, firmly worded threats of retaliation from the label side won’t change the fact that often diverging compositional and recording interests fall under the same corporate umbrella at the majors.

In a contrast to Universal Music’s withdrawal from TikTok amid their since-resolved licensing showdown, there’s simply no chance that the majors will pull their catalogs from Spotify in response to the unprecedented bundling strategy. The reasons behind the reality are numerous, and Universal Music’s over 23% stock price dip (which arrived after the company acknowledged slowing streaming growth) is worth keeping in mind.

So is the overarching power dynamic at play. Spotify can evidently afford to piss off music publishers in a big way and not have to worry about repercussions – or at least repercussions that materially harm its bottom line or otherwise disrupt its expansion ambitions.

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DMN Pro Weekly Report: Last Month, 97% of Spotify Accounts Were Classified as Bundles. Now, That Figure Is 98%. https://www.digitalmusicnews.com/pro/spotify-bundling-update-july-weekly/ Wed, 24 Jul 2024 23:30:20 +0000 https://www.digitalmusicnews.com/?post_type=dmn_pro&p=296566 Mechanical licensing royalty payments from major streaming music platforms, US, April 2024 (Source: DMN Pro data)

Mechanical licensing royalty payments from major streaming music platforms, US, April 2024 (Source: DMN Pro data)

In March, Spotify officially flipped the switch on its controversial bundling strategy. One reporting month later, the streaming giant is showing few signs of letting up.

Four months have passed since Spotify officially reclassified the vast majority of its U.S. subscriptions as bundles — thereby unlocking massive royalty savings. But just how big of an impact is the sweeping change having on stateside mechanicals?

In this DMN Pro Weekly Report, we revisit this pressing question — and find that Spotify isn’t letting up on its bundling pivot. Here’s what the latest data shows.

Report Table of Contents

I. Introduction: A Recap of Spotify’s Bundling Embrace and Related Pushback

II. Post-Bundling Spotify’s U.S. Mechanicals At a Glance – How Much Is the Platform Paying Now That 98% of Accounts Are Bundled?

Graph 1: Spotify U.S. Accounts (Not Subscribers) by Plan, March v. April 2024

Graph 2: Spotify U.S. Mechanical Royalties Payable by Plan, Pre-Bundling February, Post-Bundling March and April 2024

III. How Do Spotify’s U.S. Mechanicals Stack Up Against Those of Apple Music and Amazon Music?

Graph 3: Total April 2024 U.S. Mechanicals Payable by Apple Music, Spotify, Amazon Music, YouTube Music, Pandora, Tidal, and SoundCloud — Paid Plans Only

IV. The Bottom Line: What Spotify’s Aggressive Bundling Means for the Industry Amid Continued Streaming Growth

 

Please do not redistribute this report without permission — thank you.


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Salaam Remi’s Analog Metaverse Partners with Warner Chappell Music https://www.digitalmusicnews.com/2024/07/23/salaam-remis-analog-metaverse-partners-with-warner-chappell-music/ Tue, 23 Jul 2024 19:04:48 +0000 https://www.digitalmusicnews.com/?p=296422 Warner Chappell Salaam Remi Analog Metaverse

Photo Credit: Salaam Remi & Guy Moot / Warner Music Group

Warner Chappell Music partners with legendary producer Salaam Remi’s Analog Metaverse, boutique rights management company and music publisher.

Warner Chappell Music (WCM) announced a new partnership with Analog Metaverse, a boutique rights management company and music publisher founded by legendary record producer and music executive, Salaam Remi. As part of the deal, WCM will jointly administer the majority of the company’s expansive music catalog, including Remi’s own works, as well as that of artists like Dennis Brown, Don Blackman, Bobby “Digital” Dixon, and Terri Walker.

Spanning decades and genres, the Analog Metaverse catalog features over 2,000 songs, including classics and contemporary hits like, “Girl On Fire” by Alicia Keys, “Money In My Pocket” by Dennis Brown, “All I Want Is You” by Miguel and J. Cole, “Fu-Gee-La” by the Fugees, and “Here Comes the Hotstepper” by Ini Kamoze. The catalog also includes the Ivor Novello Award-winning song, “Stronger Than Me” by Amy Winehouse, and Remi’s eight other co-writes with Winehouse, the most co-writes of all her collaborators. Remi and his team, composed of Kwame Kandekore (Head of Legal and Business Affairs) and Josephine Westphal (Vice President of Royalties and Administration), have carefully curated this catalog over the last two years, and continue to add to it.

“Having the benefit of being a songwriter and publisher myself, I fully understand the importance of having partners who not only appreciate the wonderful creations of the icons from the last few generations, but also can help us carry them into the future,” shares Remi. “My Analog Metaverse team — Kwame, Josephine, and I — recognize how valuable partners like Guy Moot [WCM Co-Chair and CEO] and the entire Warner Chappell team are in shepherding these classics to new audiences.”

WCM CEO and Co-Chair Guy Moot concluded: “I’ve personally known Salaam for more than three decades, and it’s such an honor to be entrusted to shepherd not only his own life’s work, but that of legends like Dennis Brown. Carianne [Marshall, WCM Co-Chair and CEO] and I are very intentional about the catalogs we work with and really think about how we can grow and tend to them, both today and for the years to come. There’s a lot of synergy between our approach and Analog Metaverse’s mission, and it’s great to be joining forces to help writers and their estates realize their full potential.”

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300 Publishing Joins Forces with Warner Chappell Music in Dynamic Publishing Venture https://www.digitalmusicnews.com/2024/07/19/300-publishing-warner-chappell-music-publishing/ Fri, 19 Jul 2024 21:56:58 +0000 https://www.digitalmusicnews.com/?p=296227 300 Publishing

Photo Credit: 300 Entertainment

300 Publishing joins forces with Warner Chappell Music in a dynamic publishing venture that includes joint signings with emerging and established songwriters alike.

300 Publishing, the publishing division of Warner Music Group (WMG) label 300 Entertainment, is joining forces with Warner Chappell Music, WMG’s global publishing arm, to jointly sign both emerging and established songwriters. The new venture includes signings with hit makers like Sean Momberger, who co-produced Kendrick Lamar’s smash hit “Not Like Us” and Jack Harlow’s “Lovin’ On Me.”

The venture will be spearheaded by 300 Publishing VP Jenn Essiembre, who shares, “It all starts with a song. At 300 Publishing, we’re fiercely committed to songwriter development and building careers from the ground up. I’m honored that Kevin [Liles] has entrusted me to spearhead this business, and am looking forward to working with the team at Warner Chappell to supercharge our offering.”

“Jenn has been instrumental in developing 300 Publishing and is the only person I’d want steering this ship — she’s a force in the industry and has already made a huge impact with top-tier signings and No. 1 hits,” added 3EE Chairman and CEO Kevin Liles.

“Keeping it in the WMG family and partnering with the world-class WCM led by Guy [Moot] and Carianne [Marshall] was an obvious choice for us. They’re the best in the business and together we’ll expand our ability to deliver for our writers and producers. Rayna [Bass, 300 Entertainment Co-President], Selim [Bouab, 300 Entertainment Co-President], and I are committed to establishing a first class eco-system to be of service to the creative community. Our value proposition is that we are #biggerfamilybusiness.”

“We’ve been impressed with 300 and the work Kevin and team are doing to support artists and champion their music in bold new ways,” said WCM co-chair and CEO Guy Moot and co-chair and COO Carianne Marshall. “We share a similar mindset at Warner Chappell and believe in doing things differently and carving our own path, so joining together with such an impactful team marks the beginning of a strong partnership. We look forward to all the great songwriters and artists we’ll sign and develop together.”

In the last year, 300 Publishing signees have co-written or co-produced music for Drake, Jack Harlow, Metro Boomin, Doja Cat, Morgan Wallen, Travis Scott, Megan Thee Stallion, Gunna, Babyface, Nicki Minaj, TG, Tyga, Quavo, Flo Milli, Offset, Don Toliver, Hunxho, and more.

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Cirque du Soleil Inks BMG Partnership Deal Amid Country Music Foray — Label Services, Publishing Admin, and More https://www.digitalmusicnews.com/2024/07/19/cirque-du-soleil-bmg-partnership-deal/ Fri, 19 Jul 2024 17:33:56 +0000 https://www.digitalmusicnews.com/?p=296185 BMG futureproof

Photo Credit: BMG

Amid a foray into country music, Cirque du Soleil has unveiled a far-reaching strategic partnership with BMG.

The Bertelsmann-owned music company and Montreal-headquartered Cirque du Soleil Entertainment Group formally revealed that tie-up today. As described by the involved parties, BMG is now set to manage Cirque du Soleil’s catalog and provide support for “a range of music-oriented collaborative initiatives.”

All told, this refers specifically to BMG’s serving as the label home for future Cirque du Soleil albums, administering the company’s publishing catalog, and “jointly creating new songs and releases.”

Meanwhile, Cirque du Soleil has established an in-house music division called Studio as part of the union; the business indicated in general terms that the unit will “serve the company’s existing fanbase and attract new fans to the brand,” which has racked up north of 250 million U.S. streams to date.

Running with the point, the first release under the BMG-Cirque du Soleil pact is the already-available soundtrack for the latter’s country-focused Songblazers. As we reported in March and earlier in July, that theatrical production was created with Universal Music Nashville.

For background, the overarching Universal Music Group finalized a sweeping “alliance” with Thomas Coesfeld-led BMG, focusing initially on physical distribution, in October of 2023.

But with Universal Music Nashville having developed a Cirque du Soleil show and then handed off label and publishing duties to BMG, the cozy relationship could well drive further collaborations moving forward.

Closer to the present, Cirque du Soleil Entertainment Group chief customer experience officer Anne Belliveau in a statement touted BMG’s “fresh vision” for the industry.

“The power of music has long been a force uniting cultures and peoples in Cirque du Soleil productions around the world,” said the Cirque exec of about seven months. “As music plays an integral part in our productions, we’re proud to finally dive into the music industry and explore this new avenue.

“Over the last few years, BMG has brought a fresh vision to the music business, and we look forward to partnering with BMG on a variety of music-related opportunities,” concluded Belliveau.

And in separate comments, Marian Wolf, BMG’s SVP of publishing for North America, praised Cirque as “one of the most innovative and creative entertainment companies in the world.”

“We are thrilled to be the new publishing and recorded music home for Cirque du Soleil and to collaborate on upcoming new releases,” proceeded the longtime BMG higher-up.

“This will provide unparalleled opportunities for BMG’s diverse roster of artists, songwriters, and catalogs. Together we aim to celebrate and elevate global culture by showcasing diverse music releases and transforming the way global audiences discover new music,” finished Wolf, whose company reported nearly $1 billion in 2023 revenue.

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Reservoir Announces Publishing Deal with Singer-Songwriter Wrabel https://www.digitalmusicnews.com/2024/07/18/reservoir-publishing-deal-wrabel-announcement/ Fri, 19 Jul 2024 01:55:30 +0000 https://www.digitalmusicnews.com/?p=296158 Reservoir signs Wrabel global publishing deal

Photo Credit: Nicki Loranger (Vector Management) , Golar Khosrowshahi (Founder & CEO, Reservoir), Wrabel, Donna Caseine (EVP, Global Creative Director, Reservoir)

Reservoir Media has announced it has signed a new publishing deal with acclaimed singer-songwriter Wrabel. The deal includes his future works.

Wrabel began his career co-writing songs by pop and rock artists including Teddy Swims, Kesha, P!nk, Ellie Goulding, Adam Lambert, and Phillip Phillips, as well as EDM artists Kygo and Marshmello. Wrabel has been called “one of Hollywood’s finest songwriters,” with popular collaborations including “Better Not” by Louis the Child and Wafia, “Don’t Go Breaking My Heart” by the Backstreet Boys,” and “Don’t Let It Break Your Heart” by Louis Tomlinson.

Wrabel’s own artist project has been highly successful. His 2014 collaboration with Afrojack entitled “Ten Feet Tall” premiered in a Bud Light Super Bowl commercial and became his first Top 10 hit in the US, UK, Netherlands, and Hungary. His music has been regularly synced across projects including prominent placements in Suits, Dynasty, Grey’s Anatomy, and Love, Victor.

Wrabel’s most popular single to date is “The Village” which released in 2017 in support of trans rights. The music video has over 13 million views on YouTube, with the song going viral on TikTok where it was dubbed the ‘Trans National Anthem.’

Wrabel has used his platform to promote LGBTQ+ acceptance and rights and was named Billboard’s Pride Artist of the Month. He dropped his debut album, these words are all for you, in 2021. He has since released his sophomore album, based on a true story, with plans for a third album expected in 2025.

“I am thrilled and honored to join forces with Reservoir,” Wrabel says of the new publishing deal. “I have had so much respect and admiration for Donna for many years and it really is a dream come true to get to work together with her and the amazing Reservoir team. I can’t wait to see what our future holds.”

“We are beyond excited for our future with Wrabel,” adds Reservoir Executive Vice President, Global Creative Director Donna Caseine. “He is an inspiring and versatile songwriter and artist with a rare ability to write meaningful songs and infectious ear worms for both himself and a wide range of his contemporaries. All of us at Reservoir look forward to bringing him new opportunities for his talents to shine.”

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Word Collections to Provide Global Publishing Administration for Pop Hit Maker Richard Marx https://www.digitalmusicnews.com/2024/07/18/word-collections-richard-marx-publishing-administration/ Thu, 18 Jul 2024 20:35:15 +0000 https://www.digitalmusicnews.com/?p=296141 Word Collections Richard Marx

Photo Credit: Richard Marx for Word Collections

Word Collections announces an agreement to provide global publishing administration to legendary pop hit maker Richard Marx.

Global digital publishing administrator Word Collections has announced a partnership with legendary pop hit maker Richard Marx to provide global publishing administration. Richard Marx scored 14 Top 20 hits, including three No. 1 singles, between 1987 and 1994, and has the distinction of being the only male artist in history to have his first seven singles reach the Top 5 of the Billboard charts.

Richard Marx’s first No. 1 success as a songwriter came in 1984 with “What About Me?”, recorded by Kenny Rogers, Kim Carnes, and James Ingram, topping the US and Canadian Adult Contemporary charts. His second chart-topper, 1985’s “Crazy,” a song he co-wrote with Rogers, reached No. 1 on the Hot Country Songs chart. His self-titled debut album went triple-platinum in 1987, with his first single, “Don’t Mean Nothing,” reaching No. 3 on the Billboard Hot 100.

As a singer, his No. 1 hits include “Hazard,” “Right Here Waiting,” “Hold On to the Nights,” “Endless Summer Nights,” and “Satisfied.” He holds the distinction of having written songs that have achieved the No. 1 spot on various Billboard charts in each of the last four decades.

The signing follows a string of other notable signings, including legendary metal guitarist Yngwie Malmsteen, songwriting team Adler & Ross, director and composer Robert Rodriguez, alt-rock hit makers Sponge, Nu-Disco festival faves Poolside, Michael Batio, New Orleans Funk band Galactic, Songwriter Hall of Fame inductee and Boyz II Men songwriter Dallas Austin, and TikTok star Liana Flores.

Word Collections is a first-of-its-kind global digital publishing administration company that removes intermediaries, circumvents black boxes, reduces administration fees, identifies original, live, and cover versions of all recordings of songs, and pays songwriters, publishers, and authors more money more quickly with an unparalleled accuracy and transparency.

Founded by Jeff Price in July 2020, Word Collections initially focused on global publishing administration for comedians and other spoken word artists. A year later, Word Collections expanded its global publishing administration repertoire to include musical compositions.

Word Collections currently administers the publishing catalogs for Metallica, Greta Van Fleet, Jason Mraz, Grace Potter, St. Paul & the Broken Bones, The 502s, Sublime with Rome, Silversun Pickups, John Oates, Houndmouth, The Walters, Songwriters Guild of America, Gerencia360, St. Nicholas, Baroness, Metallica’s Kirk Hammett, The Offspring’s Bryan Dexter Holland, Shriekback, DLG., Bazanji, Gomba Music, Robin Williams, George Carlin, Margaret Cho, Jerry Seinfeld, David Cross, Ron White, Bill Hicks, Bill Engvall, Billy Crystal, and numerous other songwriters, publishers, authors, and spoken word comedians.

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The Music Industry Is Bursting With Litigation — Here Are 10 Particularly Game-Changing Lawsuits to Watch https://www.digitalmusicnews.com/pro/litigation-top-10-weekly/ Thu, 18 Jul 2024 04:00:45 +0000 https://www.digitalmusicnews.com/?post_type=dmn_pro&p=296031 10 Particularly Important Music Industry Lawsuits to Watch

Photo Credit: Mohamed Hassan

From infringement complaints against generative AI developers to unpaid royalty actions targeting streaming platforms, the music industry certainly isn’t lacking high-stakes litigation. Here are ten particularly important lawsuits with major implications to watch moving forward.

How many active lawsuits, conflicts, settlements, negotiations, and legal stare-downs are happening in the music industry — right now? At last count, Digital Music News is tracking more than 140 different filed lawsuits in the United States alone, all in various stages of litigation. And that doesn’t include the drumbeat of cease-and-desists, government proceedings, and private discussions and upcoming suits.

(Stay tuned for our complete litigation tracker from DMN Pro.)

As any attorney can attest, most of those suits aren’t groundbreaking or precedent-setting. Here’s a familiar litigatory tune: Artist A uses a sample from Artist B without permission, demands go nowhere, and litigation ensues. But some of the cases roiling the industry will have serious implications and impacts for years and decades to come. That includes battles in arenas like AI, statutory royalties, government regulation, and even national security.

Plucking from the latter, here are ten lawsuits with the potential to reshape the music industry ahead — for better or for worse, depending on where you’re seated.

Report Table of Contents

Introduction: An Overview of the Music Industry’s Litigation Landscape.

I. The Recording Industry Association of America (RIAA) v. Suno and Udio

II. The National Music Publishers’ Association (NMPA) v. X (Formerly Twitter)

III. Epidemic Sound v. Meta

IV. TikTok and ByteDance v. Department of Justice

V. Department of Justice v. Live Nation

VI. Mechanical Licensing Collective (MLC) v. Spotify

VII. MLC v. Pandora

VIII. SoundExchange v. SiriusXM

IX. UMG Recordings et al. v. Internet Archive et al.

X. RIAA v. Verizon

XI. Bonus: Cleveland Constantine Browne et al. v. Rodney Sebastian Clark Donalds et al.

Please do not redistribute this report without permission. Thank you!


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Spotify Says Its Un-Bundled ‘Basic’ Plan Isn’t Getting Buried — But You Be the Judge https://www.digitalmusicnews.com/2024/07/15/spotify-un-bundled-basic-plan-buried-response/ Tue, 16 Jul 2024 06:00:25 +0000 https://www.digitalmusicnews.com/?p=295815 Photo Credit: Ugglemamma

Photo Credit: Ugglemamma

Spotify is now taking serious issue with Digital Music News’ assertion that ‘Basic’ is getting buried from would-be subscribers.

Spotify has every incentive to bury its newly launched, unbundled ‘Basic’ subscription tier. But does that mean Spotify is intentionally hiding ‘Basic’ from would-be subscribers to steer them into its more lucrative bundled options?

Given the economics, it’s hard to imagine Spotify not wanting to bury its Basic tier. Not only are bundled plans more expensive, but they’re also substantially cheaper when it comes to royalty payments (and for proof of that, look no further than the hard data outlined in this DMN Pro report).

That may explain why Spotify has shifted more than 98% of its plans into bundles, according to our just-released Bundling Barometer.

Over the past few weeks, Digital Music News found overwhelming evidence that Basic is being buried. In response, Spotify has begged to differ and demanded corrections. We’re unsure if Spotify is helping or hurting their case here, but let’s air this out.

Perhaps the biggest tell is that new subscribers cannot subscribe to a Basic, unbundled plan. Despite the quibbling over details, Spotify didn’t dispute this critical fact.

“Basic plans are only available to existing subscribers,” a Spotify representative confirmed to Digital Music News.

Not only are newer subscribers forced into bundled tiers, but they are also unlikely to downgrade into a Basic, un-bundled tier after initially subscribing. The main reason? Few will know a simpler and cheaper plan exists — unless they accidentally stumble upon this option.

These ‘stumble upon’ moments would include revisiting the subscriber options page while logged in, clicking through other subscription options in the ‘Account’ page, or hearing about the cheaper option from a friend, forum, or other source. In all likelihood, only a tiny percentage of new subscribers will encounter the Basic option after subscribing to a bundled tier, and of those, only a subset will take action.

Spotify did note that both Family and Duo bundled Premium plans can be downgraded into Basic options, something we said didn’t exist.

The company also stated that it email-blasted all of its subscribers about the expanded option, though we somehow didn’t receive that email (and it didn’t land in our spam folder).

(On this last point, we did receive a note titled ‘Information about your plan’ on June 21st, which low-key informed us of a $1 price hike. This actually had some information about the Basic downgrade.)

None of that adds up to ‘shouting from the rooftops,’ though Spotify is trying to make the case that Basic isn’t being buried. But why are they doing this?

And why launch Basic at all if the real money is in bundling?

There may be a few motivations at work here. Spotify has been lambasted by music publishers over its sneaky, royalty-cutting shift into bundling. They have also been sued (by the Mechanical Licensing Collective) and referred to federal regulators (specifically the FTC) over this shift.

The National Music Publishers’ Association (NMPA) is also stirring trouble for Spotify: NMPA chief David Israelite is already pushing for changes on Capitol Hill following Spotify’s shift while dangling the threat of litigation against the platform for separate infringement claims (specifically related to Spotify’s lyrics, music videos, and podcasting diversifications).

But what if Spotify can simply point to a bundle-free Basic option? After all, if subscribers have a choice between bundled and unbundled, then Spotify is merely serving the marketplace instead of abusively steering people towards royalty-lowering bundles.

Meanwhile, there are rumblings that the NMPA is preparing to litigate against the aforementioned infringement allegations. But that’s a whole ‘nother can of worms.

Stay tuned.

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Apple Music Could Easily ‘Pull a Spotify’ and Shift Entirely to Bundled Offerings, DMN Pro Report Finds https://www.digitalmusicnews.com/2024/07/12/apple-music-bundling-analysis/ Fri, 12 Jul 2024 23:23:51 +0000 https://www.digitalmusicnews.com/?p=295785

According to a new DMN Pro report, at least from a legal perspective, there’s little holding Apple Music back from joining Spotify in going ‘full bundle.’ Photo Credit: Mariia Shalabaieva

Will Apple Music “pull a Spotify” by reclassifying all its subscriptions as bundles? Thanks to Apple Music Classical, the royalty-reducing move would be easy to make.

DMN Pro’s latest weekly report explores that little-discussed possibility and other significant components of bundling in the contemporary streaming landscape. By now, many know about Spotify’s unilateral shift to bundled offerings, which, under the terms of the Phonorecords IV determination, are subject to different mechanical royalty calculations than those of standalone plans.

In sum, that means Spotify, to the frustration of the NMPA and more, is poised to pay a whole lot less to (music) publishers. Despite the platform’s decidedly aggressive embrace of bundling, it isn’t alone in capitalizing on the advantages, royalty-specific and otherwise, of multi-product packages.

A clear-cut majority of YouTube Music’s paid users access the service via plans classified as bundles for royalty-calculation purposes, DMN found when analyzing fully vetted publisher statements. (This and additional U.S. bundling-share details are compiled in a one-stop database available exclusively to Pro subscribers.)

And Apple, still pushing Apple One, is likewise tapping into bundles that include its music service. But what if Apple Music followed in Spotify’s footsteps by taking the bundling commitment to the next level?

Though the topic’s guaranteed to assume center stage during Phonorecords V negotiations, at least from a legal perspective, there’s seemingly nothing preventing Apple from making the jump at once. More pressing yet, the company could probably present a better case than Spotify did when justifying its “bundles.”

To be sure, Spotify only laid the groundwork for the bundling bonanza by adding 15 hours of monthly audiobook access to its main plans and subsequently debuting an “audiobook-only” tier with the identical components sans the ever-important music. As the Mechanical Licensing Collective pointed out in its lawsuit – and as was still the case when we initially covered the complaint – Spotify’s audiobook plan somewhat astonishingly provided full access to music for a time.

On the other hand, Apple Music Classical launched back in late March of 2023. Unlike Spotify’s audiobook plan, Classical is a standalone app offered to Apple Music subscribers at no extra charge. However, if a separate Classical plan with a lower price did come to fruition (and to put it bluntly, the maneuver wouldn’t require too much effort), Apple Music could potentially get in on the bundling action as well.

To date, there’s been no concrete indication that a bundling pivot is in the cards for Apple Music. The negotiating perks of its current positioning, besides the upside of avoiding ample criticism and maintaining strong rightsholder relationships for various collaborations, are presumably worth more than the sizable tranche of possible savings.

Even so, it should be kept front of mind that the option is readily available for Apple Music, which classified almost 92 percent of its Individual subscriptions as non-bundles in February of this year, per DMN Pro calculations.

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Spotify’s Not Alone in Capitalizing on Bundling — Over 70% of Paid YouTube Music Plans Qualify As Bundles for Royalty Purposes https://www.digitalmusicnews.com/2024/07/11/youtube-music-subscribers-bundles/ Fri, 12 Jul 2024 05:35:04 +0000 https://www.digitalmusicnews.com/?p=295650 youtube music subscribers

A clear majority of YouTube Music subscribers access the platform via plans that qualify as bundles when it comes to royalty calculations, DMN Pro data has found. Photo Credit: BoliviaInteligente

As Spotify grapples with criticism and litigation over its unprecedented embrace of bundling, another telling stat has emerged: 73% of YouTube Music’s estimated subscribers use plans that are classified as bundles for royalty purposes.

The noteworthy data point is one of several included in DMN Pro’s latest weekly report, which explores the growing significance of bundling in the on-demand streaming arena. Currently, almost all Spotify’s subscriptions (roughly 98%) are technically bundles in the U.S. thanks to crafty maneuvering centering on an audiobook-only tier.

It’s unclear whether the subsequent addition of a not-so-conspicuous music-only plan will change that by convincing customers to forgo audiobooks in favor of small monthly savings. As things stand, due to the differing ways mechanicals are calculated for bundled and standalone offerings, Spotify is on track to pay a whole lot less to publishers in 2024 and, barring any changes, through 2027.

Spotify’s main competitors – it along with Apple Music, Amazon Music, and YouTube Music collectively account for the vast majority of music streaming subscribers in the States – haven’t been as brazen in adopting bundles. But as demonstrated by publisher royalty statements shared with and vetted by DMN, they also rely heavily on multi-product packages.

For YouTube Music, the fourth-largest on-demand music platform in the U.S. by paid users, that refers to the estimated 72.99% of subscribers who access the service via a bundled plan.

These bundled plans are YouTube Premium Individual, Family, and Student, with the percentage reflecting DMN Pro’s estimate of actual subscribers. Of course, YouTube Music tracks the latter internally, but they aren’t displayed on royalty statements, which instead identify total accounts. In turn, we can only approximate the number of overall paid users (three per Family plan, for instance).

On the other hand, YouTube Music as of February of 2024 had about 5.05 million accounts classified and paying mechanicals as bundles, DMN Pro’s analysis found. Unsurprisingly, that sum represents most of YouTube Music’s stateside subscriptions – at 70.77% when counting Student and Family subs as one apiece despite their smaller and larger revenue contributions, respectively.

With 83% of American adults reportedly using YouTube proper, it’s evidently easy to upsell customers on ad-free viewing as well as other perks for another $3 per month ($10.99 for YouTube Music Individual compared to $13.99 for YouTube Premium Individual, which includes Music).

The little-discussed data is important on multiple levels. First, the ongoing utilization of bundles to stand out from the highly competitive music streaming crowd is both more extensive than many know and unlikely to go away anytime soon. Still working to close the gap with the market leader, Apple Music, Amazon Music, and YouTube Music aren’t going to abandon their bundles.

Nevertheless, the way mechanical royalties are determined for multi-product plans is all but certain to change under Phonorecords V. With publishers poised to miss out on hundreds of millions of dollars solely due to Spotify’s reclassifications, the NMPA has made clear that it’s digging in for intense Phono V negotiations.

While time will tell the result of those talks, it goes without saying that bundling, and specifically the ability of streaming platforms to dramatically reduce due mechanicals with a unilateral plan-type pivot, is set to be a key focus.

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Looking for Spotify’s Music-Only Subscription Tier? Good Luck With That https://www.digitalmusicnews.com/2024/07/11/spotify-music-only-subscription-tier/ Fri, 12 Jul 2024 05:00:41 +0000 https://www.digitalmusicnews.com/?p=295574 Spotify's music-only plan remains M.I.A. weeks after its release in the United States (Photo: Digital Music News)

Photo: Digital Music News

Last month, Spotify offered the perfect solution to anyone upset with its shift towards bundled subscriptions — a plan solely dedicated to music. There’s just one problem: Spotify’s ‘Basic’ plan is practically impossible to find.

In response to all the hullabaloo and outrage over its shift towards bundled subscriptions, Spotify created the perfect solution: a music-only, bundle-free plan. Late last month, Spotify quietly launched the cheaper option for anyone who preferred a non-bundled alternative.

Introducing Spotify’s ‘Basic’ subscription tier, which does not include bundled access to audiobooks. A Spotify Basic subscription costs $10.99 per month, a dollar less than its Premium tier, which includes 15 hours of audiobook access. The stripped-down subscription plan would save customers money while preserving the higher publishing royalties associated with non-bundled subscriptions.

Problem solved.

“On Spotify, users discover and enjoy music, podcasts, and audiobooks, with various plans that meet our listeners’ needs,” the company relayed on June 21st while noting that “we’re now offering even more options for eligible U.S. subscribers.”

Suddenly, Spotify has a different story to tell regulators, lawmakers, and federal judges reviewing the company’s bundling shifts.

Sure, music publishers are livid over the company’s shift towards lower-paying bundles. But now, subscribers can choose whatever plan they want, including non-bundled options. And if subscribers can pick plans and bundles based on their preferences, isn’t Spotify just giving people what they want?

John likes the convenience of an $11.99 audiobook-bundled plan. Sally doesn’t like the bundled offering because she doesn’t like audiobooks. John and Sally move in together and get a Duo plan with audiobooks included.

It’s the subscriber’s decision, not Spotify’s.

Just one problem: Spotify’s menu of available subscription options doesn’t even list the ‘Basic’ plan.

Basic is also buried to existing subscribers who want to downgrade — if they’re even eligible to downgrade.

Spotify Went ‘Full Bundle’ And Isn’t Looking Back. But What Are the Other Music Platforms Doing?

So how is the elusive ‘Basic’ plan obtained? At the onset, would-be subscribers cannot select the Basic plan to start. Instead, a bundled subscription (for example, an $11.99 Individual subscription with audiobooks) must be purchased first, then downgraded within the Spotify app. And that assumes that the user knows a cheaper music-only plan exists.

But this gets worse. Spotify’s blog post announcing the change noted that Basic is only for ‘eligible’ users.  So who’s ‘eligible,’ exactly?

That would be existing Individual subscribers, not Family or Duo subscribers. Anyone who wants a music-only subscription as a couple or a family is out of luck. (After the publication of this article, Spotify told DMN that all existing Family and Duo Premium plans can be downgraded into Basic, music-only versions.)

In other words, Spotify is funneling all new users to the default Premium tier, which includes bundled audiobook access (for $11.99 a month). Once subscribed, that user, if ‘eligible,’ must actively seek to downgrade the Premium subscription to ‘Basic’ (at $10.99 a month).

But even after an active subscriber attempts to make changes, Basic is still hidden. Here’s what the Account page looks like for an active subscriber to an Individual, audiobook-bundled $11.99-a-month plan.

Only after clicking ‘Available plans’ is the subscriber taken to a new set of options. After scrolling down, Basic appears. And this assumes that the subscriber knows a ‘Basic’ option exists—and Spotify probably won’t alert them.

So what’s next in this game?

At this point, it appears that Spotify is planning to use its Basic plan to make the case that subscribers aren’t being forced into bundles. But whether that works with FTC regulators, CRB judges, and others reviewing the legality of Spotify’s bundling shift is speculative.

After all, Basic is buried, and publishers will make that clear — though perhaps technically, Basic also helps to diffuse legal arguments against Spotify’s bundling by opponents like the Mechanical Licensing Collective (MLC) and National Music Publishers’ Association (NMPA).

The bigger game is more obvious. For now, Spotify has effectively shifted more than 98% of its subscription plans to bundles, which translates into serious savings. According to DMN’s latest estimates, Spotify is likely to save more than $160 million worth of publishing royalties a year in the United States, while boosting revenues by half-a-billion dollars on its recent price hikes.

The more bundles, the lower the royalty bill for Spotify — and the greater likelihood of long-term profitability. In the end, the math on this one is pretty ‘Basic’.


Update: Spotify has now responded to this piece, specifically to clarify that Family and Duo Premium bundled plans are eligible for downgrade into a Basic tier. The company also noted that it emailed all subscribers with news of the cheaper Basic option — though this email was not received by DMN. Perhaps most importantly, Spotify also confirmed that the music-only downgrade is only available to current subscribers.

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UMPG Signs ‘Poor Things’ Film Composer Jerskin Fendrix https://www.digitalmusicnews.com/2024/07/11/umpg-signs-film-composer-jerskin-fendrix/ Fri, 12 Jul 2024 02:49:27 +0000 https://www.digitalmusicnews.com/?p=295681 UMPG signs Jerskin Fendrix

Photo Credit: Melissa Svensen ((L-R: Natasha Baldwin, EVP, UMPG Classics & Screen; Jerskin Fendrix; Jody Gerson, UMPG Chairman & CEO)

Universal Music Publishing Group has announced it has signed composer and musician Jerskin Fendrix to an exclusive global publishing agreement through the company’s Classics & Screen division.

Following director Yorgos Lanthimos’ discovery of Fendrix’s debut solo album Winterreise, Lanthimos commissioned Fendrix to compose his first-ever film score for the film ‘Poor Things.’ Fendrix’s critically acclaimed score earned him a multitude of awards, including Best Film Score at the 2024 Ivor Novello Awards and Best Original Score nominations at the 96th Academy Awards and BAFTAs. He is the youngest composer to ever be nominated for those awards. Fendrix has signed on to score Lanthimos’ next two films.

“I’m delighted to be working with Tash Baldwin, Anna Jaskiewicz, and the team at UMPG Classics & Screen/Decca Publishing,” says Fendrix about the deal. “I have great trust in their protection and dissemination of my work. To be signed alongside so many singular artists with UMPG is an honor, especially under such a pioneering and passionate champion of music as Jody Gerson.”

“Jerskin’s meteoric rise in the score composing world is extraordinary and he richly deserves all the accolades he has received so far,” adds Natasha Baldwin, Executive Vice President of UMPG Classics & Screen. “Jerskin has quietly developed an exciting artist/composer and songwriting style that caught our A&R team’s attention initially, so I am delighted that we are able to welcome Jerskin to a publishing company that truly supports and amplifies the whole breadth of what being a composer can mean.”

“We are very honored to be working with the inimitable genius that is Jerskin Fendrix,” adds Anna Jaskiewicz, Creative Director of UPMG Classics & Screen. “Jerskin is also a multi-talented singer-songwriter with several artist projects in the pipeline due to be released in the coming years.”

Fendrix joins the company’s prestigious global Classical & Screen composer roster of world-class composers including Nicholas Britell, Isobel Waller-Bridge, Max Richter, Hildur Guanodottir, Danny Elfman, James Newton-Howard, David Lynch, Andrew Lloyd Webber, Gustavo Santaolalla, and more.

The division is home to iconic catalogs like the Italian catalogue – Ricordi, French catalogue – Durand/Salabert-Eschig, and Hungarian catalogue – EMB, which includes composers Puccini, Respighi, Poulenc, Messiaen, Haas, Xanakis, Kurtag, Kevin Puts, David Lang, Julia Wolfe, Michael Gordon and more.

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The Bundling Barometer: What Percentage of Streaming Subscriptions Are Bundled? https://www.digitalmusicnews.com/pro/bundling-barometer-breakdown/ Fri, 12 Jul 2024 00:42:24 +0000 https://www.digitalmusicnews.com/?post_type=dmn_pro&p=295679

The Bundling Barometer: What Percentage of Streaming Subscriptions Are Bundled?

A breakdown of bundled offerings from the top steaming music platforms in the United States, with particular emphasis on which bundles impact downstream publishing royalties. Spotify, Apple Music, Amazon Music, and YouTube Music, which comprise more than 97% of the music DSP market in the US, are the focus of this database.

wdt_ID wdt_created_by wdt_created_at wdt_last_edited_by wdt_last_edited_at Platform (DSP) Bundled Subscribers (Specifically Impacting Royalties)¹ % of Total Subscribers All Bundled Subscribers² % of Total Subscribers
1 presnikoff 07/11/2024 03:38 PM presnikoff 07/11/2024 05:11 PM Spotify (February 2024) 5,359,773 10.93 28,889,556 58.90
3 presnikoff 07/11/2024 03:38 PM presnikoff 07/11/2024 05:42 PM Spotify (March 2024)³ 51,018,074 98.32 51,019,837 98.32
4 presnikoff 07/11/2024 03:38 PM presnikoff 07/11/2024 05:12 PM Apple Music 11,329,349 27.03 21,555,737 51.47
5 presnikoff 07/11/2024 03:38 PM presnikoff 07/11/2024 05:13 PM Amazon Music 6,609,829 20.38 18,421,200 56.79
6 presnikoff 07/11/2024 03:41 PM presnikoff 07/11/2024 05:13 PM YouTube Music 6,747,958 72.99 7,385,959 79.88
16 presnikoff 07/11/2024 05:42 PM presnikoff 07/11/2024 05:42 PM
Platform (DSP) Bundled Subscribers (Specifically Impacting Royalties)¹ % of Total Subscribers All Bundled Subscribers² % of Total Subscribers

 


Important Notes on Data Sources and Methodology.

[1] Bundles come in many shapes and sizes, though this column only counts bundles that specifically translate into lower music publishing royalties in the US.

[2] Includes all bundles, whether impacting publishing royalties or not (for example, Spotify’s Duo does not result in lowered music royalty payments, so it is included in this broader bundling bucket).

[3] March 2024 marks the first month for Spotify’s extreme shift towards bundled subscription plans in the US.

 

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Aaron Zuckerman Inks Reservoir Publishing Deal, Targeting ‘Even More Opportunities and Connections’ https://www.digitalmusicnews.com/2024/07/11/aaron-zuckerman-reservoir-media-publishing-deal/ Thu, 11 Jul 2024 17:09:02 +0000 https://www.digitalmusicnews.com/?p=295597 aaron zuckerman

(l to r) Reservoir EVP of creative John Ozier, EVP and global creative director Donna Caseine, creative coordinator Beth St. Jean, founder and CEO Golnar Khosrowshahi, Aaron Zuckerman, VP of creative Greg Gallo, and SongsYouLike Management’s Scott Yarmovsky, Tristan Georgio, Ari Berger, and Jonathan Rubio. Photo Credit: Reservoir Media

Liam Payne songwriter and producer Aaron Zuckerman has inked a publishing agreement with Reservoir Media.

Reservoir (NASDAQ: RSVR) reached out with word of the pact today, ahead of the upcoming release of a fresh album from Yung Gravy. The “White Claw” co-writer Zuckerman has credits on “the majority” of said album, which, along with additional futures including Ben Burgess’ next project, will be part of the Reservoir tie-up.

Beyond those efforts, Zuckerman’s existing body of work encompasses interests in tracks recorded by Lil Wayne, Karley Scott Collins, Bebe Rexha, and Alec Benjamin, to name just some. Addressing the deal in a statement, the songwriter-producer touted the passion of Reservoir, which signed the Kings of Leon to its publishing roster in March.

“I’m immensely proud of our team and the groundbreaking work we’re accomplishing in Nashville,” communicated the SongsYouLike Management client Zuckerman. “My dedication to crafting exceptional music continues to grow, and Reservoir mirrors that same passion in the best possible way!”

And in comments of her own, Reservoir EVP and global creative director Donna Caseine touched on a goal of connecting Zuckerman “with creators all over the world.”

“We are delighted to welcome Aaron to Reservoir,” indicated the more than eight-year Reservoir exec Caseine. “His versatility is a testament to his talent. We are eager to collaborate closely, across offices and genres, fostering even more opportunities and connections for him with creators all over the world.”

Zuckerman’s deal with Reservoir represents the latest in a line of publishing unions; Reservoir itself finalized a separate agreement with Lewis Thompson in late June. Recent months have also brought tie-ups between Universal Music Publishing China and Shenzhen’s Cheerful Music, Sony Music Publishing and the estate of Otis Redding Jr., and Warner Chappell and Patrice Rushen.

Furthermore, amid relatively strong reported revenue for the majors’ respective publishing units, Reservoir, BMG, and others, the National Music Publishers’ Association (NMPA) last month indicated that U.S. publishing revenue had spiked nearly 11 percent to $6.2 billion in 2023.

Notwithstanding that growth, the publishing space’s focus remains squarely on Spotify’s highly controversial subscription reclassifications. Owing to the way bundles are treated under the Phonorecords IV determination, the much-debated move could bring about annual mechanical royalties savings of over $150 million for Spotify – and a lot more than that through the remainder of Phono IV, which runs into 2027’s end.

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U.S. Copyright Office Finalizes ‘Scaled-Down’ Solution to ‘Termination Rights’ Under Mechanical Licensing Payouts https://www.digitalmusicnews.com/2024/07/09/copyright-office-recapture-derivatives-mechanical-licensing-rule/ Tue, 09 Jul 2024 21:52:36 +0000 https://www.digitalmusicnews.com/?p=295431

Washington, D.C.’s James Madison Memorial Building, which houses the U.S. Copyright Office. Photo Credit: UpstateNYer

The U.S. Copyright Office has finalized a major update to “termination rights” for mechanical licensing payouts under the MMA-established blanket license.

The Office today published its final rule on the subject, close to two years after first taking up the highly complex matter. Subsequently, all manner of organizations, from the National Music Publishers’ Association (NMPA) to the Mechanical Licensing Collective (MLC) itself and many in between, forwarded comments in support of their respective interests.

Predictably, scratching the surface of this back-and-forth (let alone the multifaceted arguments at hand) would require thousands of words – with even a brass-tacks breakdown proving lengthy in its own right.

Running with the latter in any event, many know that the initially mentioned Music Modernization Act (MMA), among other things, established the Mechanical Licensing Collective-administered “blanket license.” In keeping with its name, the license affords on-demand streaming players like Spotify the ability to utilize compositions on a blanket basis as opposed to use-by-use.

Perhaps similarly well-known is the “recapture” right established under Section 203 of the Copyright Act. In short, after 35 years, certain entertainment professionals (not solely in the music space) can potentially terminate copyright transfers to third parties like labels and publishers, thereby recapturing ownership of the works.

Less frequently discussed is Section 203’s inclusion of a “derivative work” clause, encompassing all creations stemming from the initially protected media (such as a recording of a composition).

“A derivative work prepared under authority of the grant before its termination may continue to be utilized under the terms of the grant after its termination,” the derivative work specifics read in whole, “but this privilege does not extend to the preparation after the termination of other derivative works based upon the copyrighted work covered by the terminated grant.”

Bringing that over four-decade-old legal text into the present, when a songwriter recaptures his or her rights from a music publisher, how is the blanket license affected? At the outset, the MLC called on streaming platforms like Spotify to make note of when recordings were first reproduced on their servers.

From there, the derivatives’ mechanical royalties would be paid to pre-termination owners if the blanket license was issued before the recapture notice and to post-termination owners otherwise. Expectedly, that was controversial, and because of the date-based payout approach adopted by the MLC (which didn’t “follow the Office’s rulemaking guidance”), the USCO sought to provide clarity at the intersection of recaptures, derivatives, and the blanket license.

Out of the gate, the Copyright Office didn’t hesitate to drive home its belief that recaptured works should deliver revenue to the party or parties responsible for the termination.

“Whether or not the [derivative] Exception applies to a DMP’s [digital music provider’s] blanket license (and the Office concludes that the Exception does not),” the Copyright Office penned back in October of 2022, “the statute entitles the current copyright owner to the royalties under the blanket license, whether pre- or post-termination.

“In other words, the post-termination copyright owner (i.e., the author, the author’s heirs, or their successors, such as a subsequent publisher grantee) is due the post-termination royalties paid by the DMP to the MLC,” the USCO spelled out.

Now, with the MLC having seemingly held all related royalties in the interim, the Copyright Office addressed the issue (and adjacent considerations) today with the aforesaid final rule.

Effective August 8th (though the MLC will have “until the first distribution of royalties based on the first payee snapshot taken after October 7” to comply), the rule “is a scaled-down version of the” solution floated in September of 2023, per the Office.

This scaled-down nature presumably resulted from arguments made by the NMPA and film-studio representatives, with the Office having dissected the positions in detail today. Looking beyond that interesting-but-secondary information, the MLC is under the new rule supposed “to distribute royalties based on its records and to assume that whoever is in its records is legally entitled to the distribution.”

In short, the party listed as the royalties recipient is the recipient, an approach that will ostensibly prevent the MLC from being backlogged with paused payments. However, said approach won’t prove satisfactory to those owed compensation that was incorrectly forwarded elsewhere.

And on this front, “any distribution made by the MLC is not a determination of a party’s legal entitlement to the royalties and does not prejudice any such party’s legal claim,” the Office emphasized for good measure.

Plus, the so-called default distribution provision doesn’t apply when there’s an ongoing rightsholder dispute or an MLC investigation; the appropriate royalties will be paused in the instances. Also excluded from the provision are “circumstances where the MLC receives information that would indicate to a reasonable person that the payee identified in its records is not in fact entitled to the royalty distribution.”

Moving forward, the MLC must keep on making “reasonable efforts to verify the information provided to it and to combat against fraudulent registrations and claims,” the Office stated, driving home that termination notices can extend to multiple works apiece. If one or more of these works’ status is at issue, it shouldn’t affect the others pinpointed in the same notice.

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So Long, Hipgnosis Songs Fund — Investors Overwhelmingly Approve Nearly $1.6 Billion Sale to Blackstone https://www.digitalmusicnews.com/2024/07/09/hipgnosis-songs-fund-blackstone-sale-approved/ Tue, 09 Jul 2024 19:30:58 +0000 https://www.digitalmusicnews.com/?p=295395 Hipgnosis songs fund

Photo Credit: Hipgnosis Songs Fund

So long, Hipgnosis Songs Fund: Six years, many twists, and no shortage of drama later, shareholders have overwhelmingly approved the company’s sale to Blackstone.

That formal signoff arrived at a pair of London meetings this morning, a couple weeks after Blackstone, bidding via the newly created Lyra Bidco, declared its nearly $1.6 billion offer final. The declaration coincided with reports, including from outlets such as the Financial Times, that hedge funds had obtained the votes necessary to block the sale.

Ultimately, though, these funds opted against attempting to derail the Hipgnosis Songs Fund (HSF) acquisition, itself the product of months’ worth of careful maneuvering from the revamped board.

Furthermore, today’s votes weren’t close; the sale scheme garnered 99.97 percent approval in both the court and general meetings, HSF drove home in its recap of the results. Now, in keeping with a previously announced schedule, the transaction will need to secure approval at a July 26th court hearing.

Assuming that signoff comes to fruition – and evidence suggests that it will – Hipgnosis stock (LON: SONG) will cease transferring on the public market that same day before delisting altogether on the 29th and into the 30th. The involved parties have identified August 12th as the latest date on which SONG stakeholders will receive payment (at $1.31 per share).

But as DMN Pro covered in detail, even that payment won’t mark the end of the Hipgnosis story. In terms of actual company operations, Blackstone has made clear plans to keep the brand (minus Merck Mercuriadis, who’s officially exited Hipgnosis Song Management due to the votes) alive into the future.

And while HSF’s dealmaking has been paused for some time, different Hipgnosis entities have continued closing high-profile catalog plays. Separately, Hipgnosis and Mercuriadis are still fending off legal actions levied in connection with a defunct predecessor to HSF, Hipgnosis Music Limited. We’ve also explored that fiasco, revolving around two convicted fraudsters who helped launch the initial Hipgnosis iteration, as well.

Hipgnosis’ impact isn’t limited to operations under the company banner. In many ways, the songs fund’s ascent, unprecedented music-IP landgrab, and many difficulties ushered in (or at least coincided with) a new era for the catalog space. Stated concisely, there are now far more players and capital tranches making waves in the arena, and for better or worse, sizable sales have become part of the regular industry news cycle.

On that front, Sony Music is reportedly nearing an almost $1.3 billion agreement for Queen’s body of work, following a record-setting investment in Michael Jackson’s IP earlier in 2024.

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Primary Wave Acquires Songwriter Keith Forsey’s Writer’s Share https://www.digitalmusicnews.com/2024/07/08/primary-wave-acquires-songwriter-keith-forseys-writers-share/ Tue, 09 Jul 2024 04:04:54 +0000 https://www.digitalmusicnews.com/?p=295378 Primary Wave Music Keith Forsey's writer's and producers share acquisition

Photo Credit: Primary Wave Music

Primary Wave Music has announced it has acquired songwriter and musician Keith Forsey’s writer’s and producer shares. Here’s the latest.

Terms of the deal will include Forsey’s writing and production on some of the biggest songs across music and film such as “What A Feeling,” “Don’t You (Forget About Me),” “Hot Stuff,” “White Wedding,” “Rebel Yell,” and more. Also included in the deal are songs he wrote for a number of films including ‘Flashdance,’ ‘The Breakfast Club,’ ‘Ghostbusters,’ ‘The NeverEnding Story,’ ‘Beverly Hills Cop,’ and others.

“Flashdance…What a Feeling” was co-written by Forsey in 1983 for the film ‘Flashdance.’ Sung and co-written by Irene Cara, the track became a smash hit and spent six weeks at the #1 spot on the Billboard Hot 100 chart, with an incredible run of 14 weeks in the Top 10. It was the longest running top 10 charting single of 1983. The song went on to sell more than a million copies and won both an Academy Award and a Golden Globe for “Best Original Song.”

In 2023, the song was chosen by the Library of Congress for inclusion in the National Recording Registry. “Don’t You (Forget About Me)” is also included in the deal. The song was co-written by Keith Forsey and Steve Schiff and was inspired by and featured in the 1985 cult classic film, ‘The Breakfast Club.’ The song shot up the charts to #1 and quickly became an anthem of the 80s as Scottish rock band Simple Minds’ biggest hit.

Forsey also had another number one with Donna Summer’s “Hot Stuff” which released in 1975. The song won a Grammy Award for “Best Female Rock Vocal Performance” and was later included on Rolling Stone’s list of the 500 greatest songs of all time.

“It gives me a good feeling to work with a company like Primary Wave, where I know they will respect and take care of the music that I had the good fortune to be able to create with many talented people throughout my career,” Keith Forsey says about the deal.

“Keith Forsey’s career as a songwriter, producer, and musician is nothing less than iconic. We are honored and thrilled to be a part of this amazing body of work,” adds Primary Wave Music’s Robin Godfrey Cass.

Keith Forsey is a renowned musician, songwriter, and producer whose influence has left an indelible mark on the music industry. Born in London, England, Forsey’s journey into the world of music began at an early age. He displayed a natural aptitude for rhythm and melody, honing his skills on the drums and percussion instruments.

In the late 1960s, Forsey’s passion for music led him to pursue a career as a professional drummer. He quickly gained recognition for his exceptional talent. During this time, he collaborated with various artists and bands, one of them being The Spectrum, founded by his brother Colin.

Forsey’s career took a significant turn in the 70s when he relocated to Germany. There he found himself immersed in the dynamic music culture of the era, working with some of the biggest names in the industry such as Giorgio Moroder and Harold Faltermeyer. His versatility as a musician allowed him to seamlessly transition between different genres, from rock and pop to disco and new wave. During this time he co-wrote “Hot Stuff” with Moroder and Faltermeyer for Donna Summer.

In 1983, Forsey collaborated with Faltermeyer again on the soundtrack for the film ‘Flashdance.’ He also formed a fruitful partnership with Billy Idol and went on to produce Idol’s next two albums that included hits such as “White Wedding,” “Rebel Yell,” and “Eyes Without a Face.” Those tracks helped catapult Idol to international fame, while cementing Forsey’s reputation as a top-tier producer.

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What the Hell Is Going on With Hipgnosis? A Look at the Tangled Mess Just Days Before a Critical Sales Vote https://www.digitalmusicnews.com/pro/hipgnosis-sale-july-weekly/ Thu, 04 Jul 2024 06:45:32 +0000 https://www.digitalmusicnews.com/?post_type=dmn_pro&p=295105 Selected major Hipgnosis Songs Fund shareholders as of late June and early July (Source: Hipgnosis Songs Fund disclosures)

Selected major Hipgnosis Songs Fund shareholders as of late June and early July (Source: Hipgnosis Songs Fund disclosures)

Six years and many twists later, what’s going on with Hipgnosis Songs Fund (HSF), the Merck Mercuriadis-founded company that owns 138 high-profile catalogs? The question is front of mind in industry circles now that Hipgnosis, having for some time made headlines for its operational difficulties, is poised to sell.

Report Table of Contents

I. Introduction: Where Hipgnosis Songs Fund Stands Directly Before a Possible Sale

II. A Recap of Hipgnosis Songs Fund’s Rollercoaster 2024: Key Developments from the Year’s Opening Half

Graph 1: Hipgnosis Songs Fund’s Whirlwind 2024 At a Glance 

III. Hipgnosis Songs Fund’s High-Stakes Sales Votes — All Eyes Are on Investors As They Weigh the Proposed Scheme

Graph 2: Hipgnosis Songs Fund Per-Share Stock Price, July 2019 — July 2024

Graph 3: Selected Major Hipgnosis Songs Fund Shareholders — Shares Held As of Late June and Early July 2024

IV. The End of Hipgnosis? The Positive (and Not-So-Positive) Reasons Why the Brand Is Far from Finished

Graph 4: Hipgnosis Songs Fund Catalog Size, March 2019 July 2024

Graph 5: Blackstone-Powered Hipgnosis Song Management’s Music IP Acquisitions, 2022-2024

V. Hipgnosis in the Bigger Picture: The Songs Fund’s Lasting Impact on the Wider Catalog Space

VI. Appendix: Hipgnosis’ Organizational Structure At a Glance

Please do not redistribute this report without permission. Thank you!


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What a Run: Merck Mercuriadis Announces Hipgnosis Exit, Plans to Step Away ‘Upon Closing’ of Blackstone’s Acquisition https://www.digitalmusicnews.com/2024/07/02/merck-mercuriadis-hipgnosis-exit/ Tue, 02 Jul 2024 20:00:00 +0000 https://www.digitalmusicnews.com/?p=294994

Ahead of key shareholder votes on Hipgnosis Songs Fund’s proposed sale to Blackstone, Hipgnosis Song Management founder and chairman Merck Mercuriadis has announced plans to step away from the company.

Hipgnosis reached out with word of the noteworthy development this morning, just days before the songs fund’s investors will decide whether to approve a proposed sale to Blackstone’s Lyra Bidco.

Especially given these investors’ well-documented qualms with Hipgnosis management – HSF’s continuation was overwhelmingly shot down last year, as many know – it goes without saying that the announcement’s timing doesn’t appear coincidental.

Running with the point, Merck Mercuriadis’ full-scale departure (the veteran music manager transitioned from HSM’s CEO to chairman back in February) “will be effective upon closing of the proposed acquisition” with Blackstone, the involved parties spelled out.

The relevant votes are scheduled to take place six days from today. Despite the apparent possibility that hedge funds will look to block the transaction in an effort to draw a higher sale price, that means Mercuriadis, the face of Hipgnosis, could cease being part of the business in less than one week.

Predictably, Mercuriadis himself had little to say about the actual circumstances surrounding his departure announcement. Instead, he used approximately 200 words to strike an optimistic tone when discussing Hipgnosis’ future.

“Six years after founding HSM,” Mercuriadis said in part, “I have decided that now is the right time for me to step back from my role as Chairman. This is a timely opportunity for me to undertake a strategic shift of focus, and to spend more time advocating on behalf of songwriters to ensure that they are properly compensated for their work.”

From there, the 60-year-old touted the “outstanding catalogue of rights” owned by the Hipgnosis entities and drove home the plans to continue advocating for songwriters.

“As Hipgnosis Songs Fund enters the next phase of its development,” he concluded, “now is the right time to hand the reins to a trusted and highly capable team. I am excited about the company’s future and its ongoing success with the support of Blackstone.”

Meanwhile, Ben Katovsky is evidently remaining aboard as HSM’s CEO. In a statement of his own, the exec praised Mercuriadis’ “instrumental” role in building out Hipgnosis.

“Merck’s vision and passion in creating Hipgnosis,” communicated Katovsky, “assembling an extraordinary portfolio of iconic songs and campaigning for songwriters to be fairly paid has been instrumental in Hipgnosis’ journey to date.

“I am grateful for his support and the trust that has been placed in me and the HSM team to build on his passion. We remain committed to bringing the iconic songs in our care to new audiences and ensuring that they enjoy the on-going success and attention they so richly deserve,” he finished.

Though it perhaps goes without saying, all eyes are on the mentioned votes, which were significant before the Mercuriadis bombshell but now carry extra weight. Closer to the present, the news didn’t drive an immediate shift in HSF’s stock price, which was still hovering around $1.30 per share at the time of this writing.

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The Tom Petty Estate Signs Worldwide Administration Deal with Warner Chappell Music https://www.digitalmusicnews.com/2024/07/01/tom-petty-estate-global-admin-deal-warner-chappell-music/ Mon, 01 Jul 2024 22:14:38 +0000 https://www.digitalmusicnews.com/?p=294945 Tom Petty admin deal Warner Chappell Music

Photo Credit: Tom Petty by Mark Seliger

Warner Chappell Music announces an administration deal with the Tom Petty Estate, including the majority of songs written by Petty during his life.

The estate of Tom Petty and Warner Chappell Music have announced the signing of a new worldwide administration deal for the late rock icon’s celebrated music catalog. The agreement includes the vast majority of works written by Petty throughout his lifetime, including his work with the Heartbreakers and as a solo artist.

During his 40-year career, Tom Petty recorded over 13 albums with the Heartbreakers and three solo albums. He was also a member of the supergroup, the Traveling Wilburys, and the pre-Heartbreakers band, Mudcrutch. The new deal includes hits written by Petty such as “Wildflowers,” “Free Fallin’,” “Learning to Fly,” “Refugee,” “Runnin’ Down a Dream,” and many more.

“We’re looking forward to this new partnership with the team at Warner Chappell, as we expand the reach of Tom’s iconic song catalog. This partnership will open the door to new licensing opportunities and serve to introduce his music to a new generation across the globe,” shares the Petty Estate. “We’re excited for this new chapter of growth, and the preservation of Tom’s legacy both at home and abroad.”

“Tom Petty’s music is woven into the fabric of our lives, not just across America, but around the world,” said WCM co-chair and COO Carianne Marshall and co-chair and CEO Guy Moot in a joint statement. “Tom’s unmistakable sound and lyrics remain as timeless and vital today as ever, and all of us at Warner Chappell Music are honored to be joining with his estate to help amplify his extraordinary legacy on a global scale. Their work in recent years has already laid an incredible foundation, and we’re very excited to be partnering with such an innovative and forward-thinking team.”

Tom Petty was both a Songwriters Hall of Fame and a Rock & Roll Hall of Fame inductee. He died in 2017 of an accidental drug overdose just a week after completing the Heartbreakers’ 40th anniversary tour, at age 66.

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Streaming Music Subscriber Market Share Breakdown (US) https://www.digitalmusicnews.com/pro/streaming-music-subscriber-marketshare-us/ Thu, 27 Jun 2024 22:07:11 +0000 https://www.digitalmusicnews.com/?post_type=dmn_pro&p=294730

Streaming Music Subscriber Market Share (US)

A breakdown of US-based subscribers for all major streaming music platforms (DSPs) and subscription types.


 


Important Notes on Data Sources and Methodology.

    • All figures are US-based as of February 2024; data is based on information supplied to Digital Music News and DMN Pro by major music publisher statements and verifications.
    • For specific group plan configurations, Digital Music News applies a uniform multiplier to estimate actual subscribers. For example, in a Family plan, the multiple is 3, while Individual plans would carry a multiplier of 1. Duo plans carry a multiplier of 2. In the absence of exact subscriber figures for each group plan configuration, these are attempts to estimate the actual number of subscribers actively using these platforms.
    • Spotify is currently the only US-based platform to specifically offer a Duo plan.
    • For Student plans, Digital Music News applies a multiplier of 0.5 to accommodate for significantly reduced pricing.
    • Please note that for purposes of mechanical licensing calculations, the Mechanical Licensing Collective (MLC) uses subscriber multipliers of 1.75 for Duo and Family plans, and a multiplier of 0.5 for Student plans. These are for calculating royalty payments and are not reflected in this marketshare breakdown.
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Primary Wave Music Partners with Nuno Bettencourt of Extreme https://www.digitalmusicnews.com/2024/06/27/primary-wave-music-partners-with-nuno-bettencourt-of-extreme/ Thu, 27 Jun 2024 21:08:37 +0000 https://www.digitalmusicnews.com/?p=294721 Primary Wave Nuno Bettencourt

Photo Credit: Nuno Bettencourt by Jaime Ballesteros

Primary Wave Music partners with renowned guitarist, singer-songwriter, and producer Nuno Bettencourt of the band Extreme.

Leading independent publisher Primary Wave Music has announced its partnership with iconic guitarist, singer, songwriter, and record producer Nuno Bettencourt, best known as a member of ‘80s and ’90s rock band Extreme. The partnership sees Primary Wave acquiring the musician’s publishing and recordings, as well as administration rights.

Included in the deal are all Extreme songs, with the exception of the band’s 2023 album, as well as Bettencourt’s solo works. Terms of the partnership also give Nuno access to Primary Wave’s marketing team and publishing infrastructure, which includes digital strategy, licensing, sync opportunities, and film and television production.

“After getting to know the team at Primary Wave and seeing their passion, work ethic, and creative ideas in action, I am happy now to have a bigger partnership with them,” said Bettencourt of the new partnership. “I look forward to continue building my song catalog into new realms of activity.”

“I am beyond thrilled to have Nuno join the Primary Wave family,” added Adam Lowenberg, Primary Wave’s Chief Marketing Officer. “He is one of the greatest guitar players and songwriters in the history of rock music and one of my personal favorite musicians of all time. We can’t wait to dive into this catalog and remind fans, new and old, of its greatness.”

Bettencourt has worked with artists from Rihanna to Steve Perry, Janet Jackson to Steven Tyler, with a repertoire of music that encompasses some of the biggest songs in rock history. Songs in his catalog include the Top 10 hit “Hole Hearted,” “Get the Funk Out,” “Decadence Dance,” “Rest In Peace,” and Extreme’s most well-known hit, “More Than Words.”

Released in 1991, “More Than Words” was Extreme’s third single from their sophomore album, Pornograffitti. The band fought for the release of the song as a single, which ultimately paid off. The track reached No. 1 on the Billboard Hot 100 and shot to the top of the charts in four other countries. Its success helped push the album to the Top 10 on the Billboard 200, and the band would earn its first Grammy nomination for the song.

In addition to its striking vocal harmonies, “More Than Words” shined a spotlight on Bettencourt’s guitar playing, earning him a fan vote of “Best New Talent” in Guitar World Magazine in 1991.

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Spanish Competition Watchdog Fines SGAE $6.8 Million — Collecting Society Preps Appeal Over ‘Clearly Flawed’ Findings https://www.digitalmusicnews.com/2024/06/27/sgae-fine-june-2024/ Thu, 27 Jun 2024 20:29:00 +0000 https://www.digitalmusicnews.com/?p=294694 sgae fine

The Madrid headquarters of the National Commission on Markets and Competition (CNMC), which has slapped SGAE with a multimillion-dollar fine. Photo Credit: Luis García

Back in March, Barcelona-based Unison disclosed plans to pursue damages following a “milestone” legal victory over Madrid’s Spanish Society of Authors and Publishers (SGAE). Now, Spain’s main competition watchdog has handed down a multimillion-dollar penalty.

That’s according to Unison itself, which reached out with word of the decision, and the official findings of the European nation’s National Commission on Markets and Competition (CNMC). The latter’s order for SGAE to pay close to $6.85 million (€6.39 million) resulted from an investigation set in motion by a complaint from Unison.

As we previously reported, the self-described “private musical rights management company with an international approach” Unison has levied multiple complaints against SGAE over the years. (Spain’s Supreme Court is currently reviewing some of the claims.)

And in the interest of brevity, the complaint associated with today’s penalty accused the CMO of abusing its market position and inhibiting competition. The CNMC kicked off a related investigation in January of 2022, this past March brought the initially mentioned preliminary ruling, and June 19th, Unison announced today, delivered the formal penalty order.

Digging into the above-highlighted Spanish-language watchdog decision, which seemingly leaves no stone unturned across its astonishing 291 pages, one infraction will set SGAE back $4.23 million (€3,954,364). That’s for the main alleged abuse of market position concerning radio and television rate structures as well as repertoire representations, per Google’s translation.

Meanwhile, the CNMC instituted a second, smaller penalty of $2.61 million (€2,433,455) for an alleged “abuse of a dominant position due to the design and application of tariffs” on the television side.

On top of the €6.39 million in fines, the government agency ordered SGAE to cease the conduct in question and, this time as described by Unison’s English-language summary as opposed to the multifaceted order itself, cease contracting with Spain’s Public Administration for a to-be-determined period.

DMN reached out to SGAE (which, incidentally, isn’t a stranger to regulatory fines) for comment, and the collecting society pushed back against the “clearly flawed” findings with a detail-oriented explanation while also pledging to pursue a National High Court appeal.

Here’s SGAE’s full response to the CNMC’s findings and penalty.

With respect to the recent Decision of the Spanish Competition authority (CNMC) which accuses SGAE of conducts allegedly constituting abuse of a dominant position, based on the structure and design of SGAE’s broadcasting tariffs for musical and audiovisual works, and for presenting SGAE’s repertoire as universal, SGAE would like to make the following observations.

Both findings are, in SGAE’s view, clearly flawed.

SGAE’s tariffs offer broadcasters a flat rate/availability tariff and an effective use tariff, as required by the Spanish Copyright Law. This is an obligation applied to all collective management societies and which SGAE scrupulously complies with. Furthermore, the availability tariffs are an absolutely common phenomenon in many sectors (for example, telephone or television flat rates, etc.), which tend to favour, cheapen, and simplify users’ and consumers’ use of products or services. For this reason, establishing and applying an availability-based fee cannot be considered to constitute abusive conduct.

The CNMC’s decision ignores or attempts to minimise both the fact that SGAE also offers users an effective use tariff, and, above all, the basic fact that it is the users themselves who opt for one or [the] other type of tariff, based on what they consider to be the most appropriate for their interests.

It is, therefore, radically disingenuous that, as the CNMC states, “all radio operators and the vast majority of television operators have had to use an “averaged availability fee” (comparable to a flat rate) in order to be able to use their repertoire”.  It is the broadcasters themselves who have mostly opted to use the averaged availability fee. However, some operators have opted to use the effective usage tariff, including in particular the Spanish public broadcaster, RTVE – a fact that the CNMC endeavours to minimise – which proves that, contrary to what the CNMC also claims, the effective usage tariff does represent a real alternative to the averaged availability fee. More importantly, both tariffs have been established based on economic studies that have applied consistent criteria, to ensure that both tariffs are consistent and reasonable.

The CNMC’s first accusation is therefore unfounded.

The same applies to the second allegedly abusive practice. SGAE keeps a permanently updated database of the works comprising its repertoire, to which all operators have access. Thus, they are always fully aware of which works form part of SGAE’s repertoire, and which do not.

Given that other collective management societies and other rights management entities have emerged in Spain which can manage the same types and categories of rights, SGAe only offer users the rights that it is entrusted with, and therefore, it is not true that it claims to represent the repertoires of third parties.

It is also important to recall that in December 2023, the National High Court already annulled a previous ruling issued by the CNMC in 2019 for similar grounds (Judgment dated December 19, 2023). Additionally, the CNMC’s latest decision ignores its own legal precedents as it had already validated SGAE’s Broadcasting tariffs in previous cases without raising any competition concerns.

SGAE thus radically disagrees with the CNMC’s decision and is already preparing its appeal with the Audiencia Nacional (National High Court).

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Major Label CEOs Would Do Anything for Music Publishers (But They Won’t Do That) https://www.digitalmusicnews.com/2024/06/20/major-label-ceo-music-publishers-spotify-response/ Fri, 21 Jun 2024 02:30:21 +0000 https://www.digitalmusicnews.com/?p=294096 Warner Music Group CEO Robert Kyncl (r) chatting with NMPA president David Israelite (l) at the NMPA Annual Meeting on June 12th in New York.

Warner Music Group CEO Robert Kyncl (r) chatting with NMPA president & CEO David Israelite (l) at the NMPA Annual Meeting on June 12th in New York.

The major labels all have major publishing divisions — and each one of them is getting hit with serious month-over-month royalty reductions from Spotify. So why aren’t major label CEOs doing anything about it?

Every year, the National Music Publishers’ Association (NMPA) hosts a memberwide meeting to celebrate songwriting, highlight publisher accomplishments, and discuss the latest financials and pressing issues. There’s always some good music and laughs. But this year, the meeting felt less like a celebration and more like a preparation for battle in a wartime bunker.

“Spotify has declared war on songwriters. Our response shall be all-encompassing,” NMPA president David Israelite pledged to the assembled, with on-screen text showing a quote from Winston Churchill’s 1940 “We Shall Fight on the Beaches” speech. Speaking to the assembled troops, Israelite outlined the ‘all-encompassing’ response that includes litigation, legislation, and content removals based on direct copyright infringement.

Our letter was not just a warning shot,” Israelite declared, referring to a cease-and-desist involving Spotify’s use of certain lyrics on the platform and songs in podcasts. “The NMPA has never lost a lawsuit. So you will want to stay tuned.”

Sounds pretty serious, though Spotify doesn’t look intimidated.

In the wake of an aggressive lawsuit lodged by the Mechanical Licensing Collective (MLC) and formal complaints sent to the FTC and other US-based regulatory agencies, the streaming giant has issued strongly-worded statements to Digital Music News challenging the NMPA’s claims. More importantly, they’ve plowed forward with bundled subscription reclassifications that have already resulted in a 44% month-to-month drop in mechanical royalty payments, according to just-released calculations from DMN Pro.

Preliminary royalty statements shared with Digital Music News also reveal that greater than 97% of all Spotify subscriptions in the United States are now classified as bundles in some form or another.

“At Spotify,” the company told DMN, “our approach towards expanding our offerings and increasing pricing is industry standard. We always notify users well in advance of any price increases and offer easy cancellations as well as multiple plan options to consider.”

“We categorically reject the NMPA’s baseless accusations and will continue to provide our users incredible value and a best-in-class experience,” Spotify concluded.

Spotify Mechanical Royalty Payments Drop 44% Month-to-Month as Bundling Takes Root — Here’s a First Look at the Raw Post-Bundling Numbers

Given the pronounced revenue drops involved and battle lines drawn, you’d expect the all-powerful major label CEOs to ride into town, settle the matter, and set Spotify straight. Nothing remotely close to that is occurring.

Universal Music Group chairman and CEO Lucian Grainge and Sony Music Entertainment CEO Rob Stringer have been strangely quiet. Elsewhere, Warner Music Group CEO Robert Kyncl appeared for a keynote interview at the NMPA annual event but declined to offer any serious action to reverse Spotify’s bundling moves.

Instead, Kyncl assumed more of a referee role instead of becoming a fighter in the ring.

“If you look back eighteen months when I started on the job, we had no price increases [by streaming platforms] for fifteen years,” Kyncl said. “Everything was the same, lagging inflation. Since then, we’ve had price increases by everybody, some of them twice. So we’ve moved things in the positive direction to increase the pie, to grow, and that will continue.”

“This bundling is like a variation of that,” the WMG boss continued. “In theory, I’m supportive of bundling, but we just have to make sure that we sort out all the details so that it works for us, so that the value is accruing exactly the way we want.”

“So the answer is, ‘yes, but…'”

Earlier, in a WMG earnings call, Kyncl stated that he didn’t expect Spotify’s dispute with music publishers to last long, because ‘these things don’t play out well’.

At most, that suggests that Kyncl — and possibly other label chiefs — are working to diplomatically resolve the issue with Spotify while keeping the relationship intact.

That falls far short of a TikTok-style’ nuclear option,’ which appears mostly unthinkable given the billions Spotify is plowing into major label bank accounts. Tellingly, not one source to Digital Music News pointed to anything near the extremity of the TikTok pullout emerging with Spotify. And the reasons appear simple.

While extremely high-profile and risky, the UMG-led TikTok removal didn’t involve a critical distribution partner generating a substantial portion of annual revenues. Instead, we quickly learned that TikTok was generating less than 1% of Universal Music Group’s total revenue despite the platform’s relative importance in the music ecosystem.

“With regard to TikTok, we’ve disclosed that our former deal generated about 1% of total UMG annual revenue,” Universal Music Group CFO Boyd Muir confirmed in the company’s Q4 2023 earnings call. In a subsequent analysis, DMN Pro revealed that paid downloads on platforms like the iTunes Store were generating more income for UMG than TikTok licensing.

The result: despite the optics and howls of protest from TikTokers, UMG could afford to make that point. And it’s unlikely to be a hammer wielded against a platform that is most certainly generating more than 1% of revenues.

But there’s a bigger elephant in the room here.

Publishing and recordings are two sides of the same coin, but this is anything but a 50/50 split. Recording rights are negotiated in the free market, while pre-determined statutory rates and government tribunal determinations largely determine publishing percentages. And there’s only so much of the pie that Spotify can pay out, which means that more money paid to publishers means less money to recording rights owners.

“Streaming deals are immutably constrained by the fact that there is a finite pot of money,” industry attorney, investor, and form music publishing executive Jody Dunitz explains. “There is never more than 100% (less overhead and profits) for the streaming services to pay out. Thus, songs can never achieve their fair share until labels take less.”

And the real kicker? “Because the profit margin for labels is much greater than that earned by publishers, the umbrella music corps have no incentive to support a fight to give more to songs.”

Additionally, given that financial reality, it’s unlikely that major label CEOs want to shift towards the hybridized direct-licensing framework outlined by Israelite in a recent proposal to Congress. Giving songwriters and publishers the ability to name their prices independently — and pull their content at will — risks compromising the Spotify consumer experience and reducing the pie for major labels.

All of which strongly suggests that music publishers will be forced to make their point on their own — without the air support of their corporate parents.

Kyncl and the other major label CEOs may nudge the process and bring the warring parties toward a workable resolution. But it won’t be at the expense of the bigger pie.

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Queen Catalog Sale Inches Towards Reality — Sony Music Reportedly Set to Pay a Staggering $1.27 Billion https://www.digitalmusicnews.com/2024/06/20/queen-catalog-sale-near-closing/ Thu, 20 Jun 2024 23:45:32 +0000 https://www.digitalmusicnews.com/?p=294131 queen catalog sale

A live performance from Queen and Adam Lambert. Photo Credit: Raph_PH

Sony Music’s rumored Queen catalog acquisition is reportedly inching towards reality at a staggering $1.27 billion price point.

That’s according to outlets including Hits, which just recently provided an update on the long-discussed song-rights sale. Those discussions date back to at least May of 2023, when Universal Music Group itself was said to be nearing a deal for the high-value body of work.

But the reported purchase attempt didn’t pan out, and last month, different anonymous sources indicated that Sony Music Entertainment (SME) was working to acquire the IP for a whopping $1 billion. Per Hits, however, the astonishing price tag is actually £1 billion, or almost $1.3 billion at the present exchange rate.

As a pertinent aside, multiple outlets have taken the opportunity to frame the Queen catalog deal as a wrap; the much-cited initial report, on the other hand, emphasized that the reported transaction is only “expected to close in the next few weeks.” At the time of this writing, Sony Music hadn’t commented publicly on the subject.

Surprisingly, given the eye-watering valuation at hand, there are reportedly a few strings attached to the IP buyout.

First, though recording, publishing, and NIL alike are reportedly part of the deal, Disney, we previously reported, possesses the North American recording rights to Queen’s catalog thanks to a decades-old deal.

This arrangement won’t change should the investment come to fruition, but the involved royalty payments will, of course, begin making their way to SME. Similarly, Sony Music would reportedly take over for Universal Music on a rest-of-world Queen pact when it expires in 2026 or 2027.

Lastly, in terms of caveats, SME’s reported catalog buyout will exclude live-performance revenue, which will remain with surviving Queen founding members Brian May and Roger Taylor.

With those noteworthy exceptions, an argument could easily be made that the $1.3 billion price is on the high side even with Queen’s many hits. In any event, the development reflects both the ample capital in the IP sector and a continued willingness to drop substantial sums on catalogs; Sony Music reportedly bought a 50 percent interest in Michael Jackson’s song rights for $600 million earlier in 2024.

And in the bigger picture, coughing up a bit too much to own valuable assets probably won’t prove a major issue in an expanding industry with billions floating around at any given time. On the catalog side, these are literally one-of-a-kind investments, while an inflationary market and industry revenue expansions are rendering other purchase options increasingly attractive.

For instance, Sony Music’s $430 million play for AWAL, announced in early 2021 and closed in 2022 following some regulatory scrutiny across the pond, now feels like a relative bargain. So does the major label’s 2021 quarter-billion-dollar buyout of Som Livre, a sizable player in Brazil’s quick-growing music sector.

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Spotify Mechanical Royalty Payments Drop 44% Month-to-Month as Bundling Takes Root — Here’s a First Look at the Raw Post-Bundling Numbers https://www.digitalmusicnews.com/pro/spotify-bundling-drop-44-pct-weekly/ Thu, 20 Jun 2024 04:45:36 +0000 https://www.digitalmusicnews.com/?post_type=dmn_pro&p=294051 Spotify U.S. Mechanicals Payable: January, February, and March 2024 (Source: DMN Pro)

Spotify U.S. Mechanicals Payable: January, February, and March 2024 (Source: DMN Pro)

As confidential data pours in, DMN Pro crunches the numbers on the impact of Spotify’s bundling discount.

What’s the actual impact of Spotify’s bundling reclassifications? A preliminary answer to that question comes from data provided by a major music publisher and vetted by Digital Music News for March of 2024, the first reporting period to include Spotify’s bundling discounts for March 2024, the first month to reflect Spotify’s bundling modifications.

Report Table of Contents

I. Spotify’s Mechanicals Falloff by the Numbers: Bundling’s Impact on Eligible Revenue

Graph 1: Spotify Eligible Revenue for Mechanicals Calculations, Pre-Bundling February 2024 v. Post-Bundling March 2024 (U.S.)

II. A Tough Break for Publishers: Here’s How Much Less Spotify Paid in U.S. Mechanicals for March 2024

Graph 2: Spotify U.S. Mechanicals Payable, January, February, and March 2024 

III. Spotify’s U.S. Mechanicals and the Bigger Picture: Why a Potentially Massive Decrease Could Be in Store 

IV. With Spotify’s Bundling Pivot, Publishers Are Staring Down An Estimated $772 Million Phonorecords IV Decrease 

Graph 3: Spotify’s Estimated U.S. All-In Royalty Pool Decrease Due to Bundling, 2024-2027

V. Where Does the Battle Over Mechanicals Go From Here? Spotify Digs in As Music Publishers Prep “All-Encompassing” Response

Please note: unauthorized reproduction of this report is prohibited.


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Spotify’s First Post-Bundled Royalty Statements Have Arrived — 97% of All Subscription Accounts Are Now Lower-Paying Bundles https://www.digitalmusicnews.com/2024/06/14/spotify-subscription-accounts-bundles-transition/ Fri, 14 Jun 2024 07:56:46 +0000 https://www.digitalmusicnews.com/?p=293689 Photo: Katrin Bolovtsova

Spotify’s bundles-of-joy are now wreaking havoc on royalty statements (Photo: Katrin Bolovtsova)

Spotify’s hard shift toward bundling and its associated loopholes have officially started hitting publisher royalty statements, according to documents shared with Digital Music News this week. So far, it looks like Spotify has taken an extreme turn toward cut-rate bundling recategorizations—here’s a look at the preliminary statements.

Last week, Digital Music News calculated that Spotify accounts for an impressive 42% of all mechanical royalties paid in the U.S., based on a tranche of confidential royalty statements from February of 2024. Now, it looks like that percentage is going to drop significantly, thanks to an extreme shift towards bundling that is now impacting music publisher bank accounts.

And make no mistake—this is now impacting music publisher wallets in a serious way. Earlier, sources to Digital Music News noted that Spotify’s ‘bundle-apocalypse’ was slated to start during the March reporting month. Now, roughly 45 days after the close of that reporting period, those tips have proven accurate, with dramatic shifts towards bundled subscription packages appearing in preliminary statements shared with Digital Music News by a major music publisher.

This means that despite a contentious lawsuit filed by the MLC and multiple regulatory complaints lodged by the National Music Publishers’ Association (NMPA), Spotify is pushing full steam ahead with its aggressive bundling shift—with fairly drastic conversions and royalty drops officially in motion.

Spotify definitely isn’t tapping the brakes on this one—separate sources have relayed that the streaming platform is fully prepared to battle with music publishers and regulators to sustain their bundling recategorizations. But what’s the damage in hard numbers?

Before we dive into the hard data, our sources noted that royalty figures are still preliminary and not final. So stay tuned for more detailed analyses and number-crunching on these declines. But after a preliminary review of several statements, DMN can report that there’s clearly a major cliff ahead for publishing payouts—with an enormous percentage of subscription accounts bundled in one form or another.

For now, Digital Music News can confirm that nearly 97% of Spotify subscription accounts are now categorized as bundles in the United States, with associated per-stream mechanical royalty drops.

That includes a shift of nearly 100% of all Family and Duo plans, with a substantial chunk of the all-important Individual subscriber plans also transitioning.

Digging a bit deeper into the Individual subscriber shifts: for the March reporting period, Spotify has transitioned slightly more than 20 million Individual subscriber accounts into bundled plans. During the February statement, the last non-bundled period, total Individual subscriptions topped 20.16 million in the United States.

Spotify Stands to Gain at Least Half-a-Billion a Year From Its Latest Price Increases In the U.S. Alone. Music Publishers Won’t Be Seeing Much of That.

Interestingly, Spotify is still counting another 869,912 Individual accounts as non-bundled in their March tallies. These subscribers may have jumped on an opportunity to forego the audiobook bundle and revert to the $10.99 price point – though, in full disclosure, we’re not entirely clear how that process worked.

Looking ahead, sources have noted that Spotify is expected to release a music-only option in the United States, with subscribers potentially having the option to downgrade into a non-audiobook, music-only option for $1 less a month.

As we reported earlier, certain U.K. subscribers evidently have the option to pay £10.99 per month (not £11.99) for the solo plan by giving up audiobooks, with a stateside rollout potentially next.

Spotify identified 4.17 million audiobook-bundled Duo accounts in March, up from 3.86 million in February. Audiobook-bundled Family accounts, for their part, numbered 5.65 million in March, up from 5.27 million in February.

Notably, following the March transition, virtually zero non-bundled Duo or Family plans now exist. The tiny numbers of non-bundled Duo and Family plans may simply be reporting errors.

In terms of what this means for publishing payouts, it now appears that the damage may be greater than anticipated. Earlier, the music industry pegged the bundling royalty decline at $150 million annually. However, based on preliminary royalty drops reviewed this week, DMN’s back-of-the-envelope calculations now peg that figure well past $160 million.

Meanwhile, NMPA chief David Israelite has been highly vocal about the issue, describing the bundling shift as a “war on songwriters.”

During the NMPA’s recent annual meeting, Israelite promised an “all-encompassing” response to what he sees as Spotify’s aggressive bundling strategy. This response includes a lawsuit filed by the Mechanical Licensing Collective (MLC) challenging the bundling reclassifications and seeking unpaid royalties.

The NMPA has also lodged a complaint with the FTC and various state attorneys general to investigate Spotify’s alleged “unfair and deceptive practices.”

Israelite noted that the organization would continue to advocate for federal legislation to allow direct publisher negotiations with digital service providers (DSPs). During the meeting, he also pointed to an MLC audit of Spotify to uncover any discrepancies in royalty payments, as well as licensing disputes related to videos, lyrics, music in podcasts, and other unauthorized uses.

Spotify has publicly defended its actions, stating that its approach to bundling and pricing is industry standard. The company emphasizes that it notifies users in advance of any price increases and offers multiple plan options.

Sources to DMN have also indicated that Spotify plans to battle the NMPA on all fronts and remains confident that they will prevail in various legal and legislative disputes. Amicable agreements are always possible, but we’re not hearing about any conciliatory chats at the moment.

Separately, Spotify has raised its prices in the United States yet again.

According to DMN Pro calculations, that will generate at least half-a-billion more dollars annually for the platform. But thanks to bundling shifts, music publishers will see little of those gains.

More as this develops.

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Spotify Bundling Fallout Continues; Federal Lawmakers Present ‘Serious Questions’ to the Copyright Office About ‘A Compulsory Licensing System That Robs’ Songwriters https://www.digitalmusicnews.com/2024/06/13/copyright-office-spotify-bundles-congressional-letter/ Fri, 14 Jun 2024 06:20:04 +0000 https://www.digitalmusicnews.com/?p=293668

Washington, D.C.’s James Madison Memorial Building, which houses the U.S. Copyright Office. Photo Credit: UpstateNYer

Amid continued criticism over – and legal challenges against – Spotify’s aggressive embrace of bundling, federal lawmakers from both sides of the aisle have reached out to the Copyright Office with “serious questions” over the change.

Those lawmakers, Representatives Ted Lieu and Adam Schiff as well as Senator Marsha Blackburn, just recently released a public copy of the appropriate letter. Far from coming as a surprise, the message, one component of an increasingly involved campaign against Spotify’s bundles, was touted at the National Music Publishers’ Association’s 2024 annual meeting yesterday.

“As part of this legislative effort,” NMPA head David Israelite revealed after underscoring plans to enable direct publisher negotiations with DSPs, “I am pleased to announce that today, Congressman Ted Lieu of California, a senior member of the House Judiciary Committee, as well as Senator Marsha Blackburn and Congressman Adam Schiff, have sent an official letter to the Copyright Office regarding the Spotify matter.

“The letter warns of Spotify’s abuses of the statutory rate process and questions whether there are sufficient protections in place to ensure companies that use the compulsory license cannot abuse the system,” proceeded Israelite.

In keeping with that description and the NMPA’s direct-negotiation ambitions, the letter itself, addressed to Register of Copyrights Shira Perlmutter and spanning a little over 500 words, begins by taking aim at the compulsory license.

“American songwriters create the music we love but have long labored under a compulsory licensing system that robs them of control over their work and the ability to receive fair compensation,” the lawmakers penned, touting the Music Modernization Act and then reiterating the much-discussed specifics of Spotify’s bundling reclassifications.

“Digital service providers should not be permitted to manipulate statutory rates to slash royalties,” the representatives and the senator proceeded, “deeply undercutting copyright protections for songwriters and publishers. A fair system should prevent any big tech company from setting their own price for someone else’s intellectual property, whether the owner wants to sell or not.”

And from there, the lawmakers acknowledged an intention to “explore a response to these recent developments.” For the time being, though, two related (and decidedly straightforward) questions were posed to the Copyright Office to help the congressmembers “understand the available options.”

The first requests details about “protections in place to ensure” that the compulsory license cannot be abused “to the detriment of copyright owners.” And the second concerns the availability of “an efficient, low-cost process by which copyright owners may seek relief where improper or illegal actions are taken by licensees.”

While it’ll be interesting to see how the Copyright Office responds and how Congress approaches the multifaceted situation from there, it can safely be said that there’s growing fallout surrounding Spotify’s bundling. Although the MLC is suing over the change and alleged royalties underpayments, the NMPA has levied a complaint with the FTC, and a different legal action yet could well be on the way, Spotify doesn’t appear to plan on backing down.

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Has Spotify’s Music Publisher Showdown Gone from Battle to All-Out War? NMPA Head Promises ‘All-Encompassing’ Response to Bundling Frenzy https://www.digitalmusicnews.com/2024/06/13/spotify-music-publishers-war/ Thu, 13 Jun 2024 20:01:49 +0000 https://www.digitalmusicnews.com/?p=293642 TikTok NMPA license not renewing

Photo Credit: NMPA

The bundling-centered showdown between Spotify and music publishers has evolved from a battle into a war – at least according to National Music Publishers’ Association (NMPA) head David Israelite, who’s described the situation as a “war on songwriters.”

That bold declaration was made during the NMPA’s annual meeting yesterday, against the backdrop of an intensifying dispute between Spotify and publishers. For the uninitiated, Spotify’s abrupt reclassification of its existing plans as bundles – a move set in motion by the rollout of an audiobook-only offering – is fueling a material decrease in U.S. mechanical royalties.

In brief, said material decrease is the result of royalty-calculation differences for bundles and non-bundles under Phonorecords IV. The latter determines how much on-demand streaming platforms pay in mechanicals and is set to run through 2027’s end.

For obvious reasons, the development isn’t sitting right with key players on the compositional side. The Mechanical Licensing Collective (MLC) is challenging the bundling reclassifications (and seeking allegedly unpaid royalties) in court, and NMPA-corralled publishers have in a letter encouraged the FTC to investigate Spotify’s alleged “unlawful conduct” and alleged “unfair and deceptive practices.”

Running with the claims featured in the MLC’s complaint, that FTC letter, we reported yesterday, points to alleged consumer harm stemming from Spotify’s audiobook bundling – allegedly inflating costs, inhibiting choice, and “ultimately leading to lower quality and less availability of music.”

“Further, by charging consumers without consent, Spotify has engaged in unfair practices,” the NMPA spelled out. “Spotify’s ‘bundling’ harms consumers by duping them into paying more for a service that they do not want.”

While the fate of that argument and the MLC courtroom confrontation remains to be seen – Spotify is reportedly adding a music-only alternative in certain regions – the episode is displaying few signs of a near-term resolution.

As mentioned at the outset, the NMPA’s David Israelite underscored as much during his organization’s annual meeting yesterday.

“Spotify has declared war on songwriters. Our response shall be all-encompassing,” Israelite pledged, with on-screen text showing a quote from Winston Churchill’s 1940 “We Shall Fight on the Beaches” speech.

On the response front, Israelite highlighted the MLC suit, a push for federal legislation regarding direct publisher negotiations with DSPs, forthcoming Phonorecords V proceedings, the MLC’s Spotify audit, and the NMPA’s firmly worded Spotify licensing qualms (including alleged infringement concerning videos, lyrics, music in podcasts, and more).

Our letter was not just a warning shot,” Israelite communicated of those qualms, “and NMPA has never lost a lawsuit. So you will want to stay tuned.”

Shifting the focus to the opposite corner of the dispute, Spotify has pushed back against the claims publicly on multiple occasions.

“At Spotify,” the company relayed in an official statement, “our approach towards expanding our offerings and increasing pricing is industry standard. We always notify users well in advance of any price increases and offer easy cancellations as well as multiple plan options to consider.

“We categorically reject the NMPA’s baseless accusations and will continue to provide our users incredible value and a best-in-class experience,” Spotify concluded.

As described to DMN by a major-label source working with Spotify, the service isn’t posturing in the media by putting out these and similar comments. Rather, the platform believes it will prevail “on the very substantial merits” and won’t be deterred by the MLC suit or the NMPA’s FTC complaint.

Among other things, that clear-cut resolve, coupled with the NMPA’s stance, means we should buckle up for what will likely prove a bitter clash not only through the remainder of 2024, but into 2025 and possibly beyond.

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Spotify Stands to Gain at Least Half-a-Billion a Year From Its Latest Price Increases In the U.S. Alone. Music Publishers Won’t Be Seeing Much of That. https://www.digitalmusicnews.com/pro/spotify-price-increase-half-a-billion-weekly/ Thu, 13 Jun 2024 06:00:44 +0000 https://www.digitalmusicnews.com/?post_type=dmn_pro&p=293556 So far, so good: despite a string of recent price increases, Spotify's subscriber count keeps going up (Source: Spotify disclosures)

So far, so good: despite a string of recent price increases, Spotify’s subscriber count keeps going up (Source: Spotify disclosures)

Spotify has once again raised prices in the U.S. as well as the U.K., where individuals must now pay $11.99 and £11.99 per month, respectively, for ad-free listening. That will create a handsome windfall for Spotify and well-positioned partners like major labels. Music publishers won’t fare so well, however, despite the top-line increases.

How will Spotify’s latest price-hikes impact subscriber growth and revenue in the long term – including for music publishers? Many are asking that question in the wake of the pricing changes, which were announced in April for U.K. subscribers and unveiled in June for U.S. customers. Among other things, the bumps have elevated the prices of Spotify’s various tiers past those of its foremost competitors, including Apple Music.

Now, it’s time for some number-crunching. A quick assessment shows that Spotify is virtually guaranteed to generate an extra $500 million annually in revenue in the United States alone, with the U.K. potentially adding several hundred thousand more into the pot. But given marked shifts into bundled packages, how will music publishers, songwriters, and compositional IP owners fare?

Here’s a look at the trickle-down — or lack thereof.

Report Table of Contents

I. Introduction: The Effects of Spotify’s U.S. (and U.K.) Price Increases

 Graph: Spotify and Apple Music Pricing As of June 2024 — U.S. and U.K. Non-Bundled Offerings

II. Spotify Price Increases, Subscriber Growth, and Churn — Will Heightened Monthly Charges Dissuade Customers?

Graph: Spotify Subscribers by Quarter, Q1 2017 — Q1 2024

III. Spotify’s Subscriber Outlook Post-Price Increases — A Data-Focused Forecast

Graph: Spotify Q2 Net Subscriber Growth As a Percentage of Paid Users, 2017 — 2024 

IV. Spotify Price Increases and Post-Bundling Mechanicals: Will Publishers and Songwriters Benefit?

V. The Bottom Line: Who’s Really Set to Benefit from Spotify’s Price Increases?

Please note: unauthorized redistribution of this report is prohibited. 


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Music Publishing Revenue Climbed 11% to $6.2 Billion in 2023, NMPA Reports https://www.digitalmusicnews.com/2024/06/12/music-publishing-revenue-in-2023/ Thu, 13 Jun 2024 04:24:27 +0000 https://www.digitalmusicnews.com/?p=293594 u.s. music publishing revenue in 2023

Photo Credit: NMPA

The National Music Publishers’ Association (NMPA) revealed U.S. music publishing revenue reached $6.2 billion in 2023—up 10.74% compared to 2022.

The NMPA held their annual meeting at Alice Tully Hall at Lincoln Center in New York and detailed publishing revenue, but also painted a target on Spotify’s back over its bundling scheme. NMPA President & CEO David Israelite detailed a complaint sent to the FTC by the trade organization, urging action from the government on Spotify’s bundling scheme. It’s estimated that Spotify will pay $150 million less in music royalties this year due to audiobook bundling.

The NMPA complained that Spotify is engaging in deceiving its customers by converting its millions of music subscribers to these new bundled plans without their content. The NMPA says Spotify is “failing to offer an option for subscribers to revert to a music-only subscription and is thwarting attempts to cancel through dark patterns and a confusing website interface.”

The organization is hoping the FTC will take action against Spotify’s bundling by highlighting that its Audiobook Access Tier is only available in the United States. The NMPA calls this a transparent attempt to game the United States’ unique rules established for royalties as laid out in the Phonorecords IV settlement that covers mechanical streaming royalties from 2023 to 2027.

The new headline royalty rate is 15.35%, which is to be phased in over a five-year term. That agreement was supposed to modernize the treatment of bundles of products or services that include music streaming—but the NMPA says Spotify is violating the spirit of that agreement. The rate now paid by Spotify Premium plans is now lower than the established headline rate for 2024 (15.2%).

“Spotify’s attempt to radically reduce songwriter payments by reclassifying their music service as an audiobook bundle is a cynical, and potentially unlawful, move that ends our period of relative peace. We will not stand for their perversion of the settlement we agreed upon in 2022 and are looking at all options,” David Israelite, President & CEO of NMPA commented shortly before launching the FTC complaint.

While much of the annual meeting was spent detailing the NMPA’s approach to Spotify’s bundling, not everything was glum from the music publishers. The NMPA issued awards to Lana Del Rey as this year’s Songwriter Icon receipient and Savan Kotecha, winner of the Non-Performing Songwriter Icon award. “Can’t Help Falling In Love” was given the NMPA Iconic Song Award, with Ingrid Michaelson performing the music during the meeting.

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Music Publishers File FTC Complaint Against Spotify for ‘Cheating the Music Royalty System’ https://www.digitalmusicnews.com/2024/06/12/music-publishers-file-ftc-complaint-against-spotify/ Thu, 13 Jun 2024 04:03:24 +0000 https://www.digitalmusicnews.com/?p=293591 NMPA files FTC complaint against Spotify for stiffing music publishers with audiobook bundling scheme

Photo Credit: Felipe Pelaquim

The National Music Publishers’ Association (NMPA) has filed a complaint with the FTC over Spotify’s audiobook bundling scheme. The complaint says Spotify is increasing profits “by deceiving customers and cheating the music royalty system.”

Spotify began offering audiobooks as part of its streaming option in November 2023, giving 15 hours of audiobook content to Spotify Premium subscribers. Then in March 2024, Spotify added a new subscription option for an audiobook-only plan that offers another 15 hours for a flat $10 fee. At the time, Spotify pointed to a 45% increase in free tier Spotify users interacting with audiobook content.

The NMPA complaint says Spotify is forcing its Spotify Premium customers to pay more for content that they don’t use and can’t opt-out of receiving. Estimates suggest Spotify will pay around $150 million less to music publishers in the first year of Spotify’s bundled Premium plan.

The complaint goes into the details of the process of going from Spotify Premium to a free-tier access user, saying Spotify employs dark patterns to keep users subscribed to the bundled Premium plan. “Starting at a user’s ‘Account’ page and clicking ‘Manage Your Plan,’ a user would need to click through five separate pages before the switch could be confirmed.”

“Along the way, users are confronted with repeated and threatening reminders of the functionalities and control over their music that they will lose if they switch from Premium—a textbook example of a dark pattern.”

Aside from complaining about Spotify’s customer retention flow, the NMPA says “Spotify has advanced a ploy to pay less in royalties for the music content that its subscribers actually want and originally joined Spotify to access.”

The NMPA also claims that Spotify’s standalone audiobook bundle for $10 a month is a sham. “It is not designed to entice consumers, rather it exists solely to allow Spotify to claim that audiobook content is a significantly and independently valuable aspect of its ‘bundled’ Premium Plan. The sham nature of the Audiobook Access Plan is obvious from the fact that it is impossible to find on Spotify’s website and is not listed as part of Spotify’s subscriptions.”

“As proof of the connection between the plan’s offering and the unique system for determining royalties in the United States, the Audiobooks Access Plan exists only inside the United States and is not currently offered in foreign countries, because outside the U.S., Spotify does not have the same ability to use a ‘bundled’ offering to lower royalties.”

“Spotify now pays significantly less in royalties to music publishers and songwriters under the assertion that its Premium Plan subscribers are all paying for a bundled-content subscription and that audiobooks comprise a valuable aspect of that subscription.”

“These actions collectively harm consumers by depriving them of choice, raising their costs, and ultimately leading to lower quality and less availability of music—which is the opposite of what consumers expect in paying for Spotify Premium. They are also an outlier within the industry. Other companies have distinct and clearly advertised music-only and bundled-content services, for which consumers may knowingly sign up.”

The NMPA highlights several consumer complaints about the newly bundled plans, showcasing how unhappy many of them are. “They need to make options to leave audio books out of the plan if we choose,” writes one consumer. “I have audible. I don’t need it on Spotify. They have the same books.”

The NMPA asks the FTC to review Spotify’s bundling practices to “protect consumers and the integrity of the music marketplace.” It suggests without FTC intervention, consumers will pay more for content they don’t want while Spotify maintains its “unfair competitive advantage” due to accounting for nearly one-third of the music streaming market.

See the entire NMPA complaint to the FTC here.

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How Low Will Spotify’s Royalty Payments Go? The Entire Music Industry Is About to Find Out https://www.digitalmusicnews.com/2024/06/11/spotify-royalty-payments-how-low/ Wed, 12 Jun 2024 06:12:32 +0000 https://www.digitalmusicnews.com/?p=293496 Image adapted from an illustration by CDD20.

Image adapted from an illustration by CDD20.

Last week, the music industry learned that Spotify accounts for 42% of all mechanical royalty payments in the US — following Digital Music News’ exhaustive breakdown of one of the most recent reporting months. That market-leading percentage is now likely to take a severe hit — but how low will Spotify go?

Spotify’s ‘bundle-pocalyse’ is nigh, with nervous IP owners pouring through early royalty statements to assess the damage.

One source to Digital Music News noted that the Mechanical Licensing Collective (MLC) has already distributed preliminary reports for March, the month that marks the beginning of Spotify’s massive royalty cuts to music publishers, songwriters, and other compositional IP owners. Apparently, the data isn’t fully baked yet, though rights owners are getting a preview of the carnage.

Spotify’s sudden and massive shift towards bundled offerings—a move that dramatically lowers its publishing payment obligations—is officially barreling forward. DMN understands that MLC’s March statements are now in the final stages of being tallied and distributed.

A working estimate of a $150 million annual drop has been widely bandied about, though let’s see how that ballpark figure holds up. DMN is currently working to obtain preliminary data, with some serious number-crunching on tap for the remainder of this week.

Depending on the exact nature of the drop, it’s possible that Apple Music could surpass Spotify in total mechanical royalty payments. Apple Music is now slightly ahead of Spotify in the all-important individual subscription tally in the US, according to eyebrow-raising market share data exclusively revealed by DMN.

And what about the MLC’s legal battle with Spotify?

The MLC, which oversees mechanical licensing payouts in the US, is now locked in a legal battle with Spotify over allegations that the platform’s bundling reclassifications are illegal. But barring an injunction or sudden shift in that litigation, Spotify will now be doling out its discounted royalties to less-than-thrilled publishers and songwriters.

As first reported by DMN, a federal judge recently granted Spotify’s request to delay its response to the MLC litigation. Judge Analisa Torres signed off on the request, thereby moving the deadline for Spotify’s response from June 10th to July 19th.

Which means Spotify’s attorneys cleverly bought some time while the royalty-chopping carnage gets underway. And the clock is ticking: based on the $150-million-per-year estimate, that comes out to $12.5 million monthly – or north of $20 million between now and the new response deadline.

Meanwhile, there’s little indication that Spotify execs are losing sleep over this.

Music publishers and songwriters are understandably agitated, though Spotify appears less concerned about the pushback. Instead, Wall Street investors seem to be the more critical audience, with profitability representing the critical benchmark for the stock’s performance.

Speaking of Spotify’s SPOT stock, two top Spotify insiders have already cashed out a cool $90 million in Spotify shares this month alone, which ironically represents nearly two-thirds of the estimated annual royalty drop for music publishers. The cash-outs suggest that insiders are hardly fretting about publishing haircuts, with cost-cutting measures like the reduction in Spotify royalty payments handsomely boosting SPOT shares and resulting payouts.

Separately, appeals to ethical considerations seem to be blowing in the wind.

Just recently, a former Spotify executive criticized the company for its move, though Spotify itself seems unswayed. Former Global Head of Publisher Licensing Adam Parness called Spotify’s decision to switch its subscriptions to bundles “misguided and unfair,” describing it as an “ill-informed attempt to deprive songwriters and music publishers of their rightfully earned U.S. mechanical royalties.”

Parness said he framed his critique not as a way to disparage Spotify but as an appeal to the company to honor the spirit of its agreements. A strong appeal indeed, though perhaps that messsage-in-a-bottle didn’t quite make it to Daniel Ek’s superyacht.

Meanwhile, the National Music Publishers’ Association (NMPA) has been pushing for a hybridized direct and compulsory licensing framework for mechanical royalty payments in the United States.

However, we’ve heard little movement on this front, though Israelite is a notorious 3D chess master when it comes to pulling levers on Capitol Hill.

The NMPA has called on Congress to allow direct negotiations between music publishers and streaming platforms alongside existing statutory mechanical rate payouts. This shift would maximize negotiating power and payouts for publishers but faces significant legislative hurdles.

More as this develops.

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Republic Joins Team Jelly Roll Alongside BMG and Its Subsidiaries https://www.digitalmusicnews.com/2024/06/11/republic-joins-team-jelly-roll-alongside-bmg-and-its-subsidiaries/ Wed, 12 Jun 2024 03:25:42 +0000 https://www.digitalmusicnews.com/?p=293489 Jelly Roll BMG

Photo Credit: Monte Lipman (Republic), Jelly Roll, Jon Loba (BMG), Avery Lipman (Republic) / BMG

Jelly Roll extends his partnership with BMG, teaming up with Republic Records as they enter a worldwide partnership for the star’s next album.

Jelly Roll is on a roll, extending his current partnership with BMG music publishing and its subsidiaries BBR Music Group (BBRMG) and their imprint, Stoney Creek Records. The star is releasing his next album with Republic Records as they enter a worldwide deal with BMG.

The freshly promoted BMG President of Frontline Recordings for North America, Jon Loba, announced the news alongside Republic Records Founder & Chairman Monte Lipman. The two emphasized that the alliance between the two labels is focused on maximizing Jelly Roll’s impact across multiple genres, expanding marketing into new territories. Republic Records and BMG are set to release the singer-songwriter’s next album later this year.

“Jelly Roll embodies artistry and independence. His authenticity is the key to his success. He continually uses his platform to not only captivate audiences with his music but also to uplift communities,” shares Loba. “As an artist, he is a true trailblazer; as a human being, he has left a legacy of both talent and kindness, winning over fans all around the world. We are proud of everything we have accomplished together and look forward to achieving even more success in the future.”

“I couldn’t have accomplished what we’ve done with ‘Whitsitt Chapel’ and all that’s happened in the last year without the support and belief I’ve had from Thomas Coesfeld, Jon Loba, and the rest of the team at BBR,” says Jelly Roll. “Being able to now also work with Republic, Monte and his team — I’ve never been more inspired musically and I am looking forward to releasing this new music with great partners.”

“Jelly Roll is a global icon who’s rewritten the rule book and continues to smash traditional boundaries, all on his own terms. His strength, determination, and creative vision is that of legends. We’re honored to join his strategic partnership with Stoney Creek Records, BMG, and trusted hitman and consigliere John Meneilly,” adds Monte Lipman.

Jelly Roll is set to premiere his new song, “I Am Not OK,” on June 12 — the first single from his forthcoming album. That project follows his debut country album, Whitsitt Chapel, the biggest country debut album in Billboard chart history, with multiple No. 1 hits across both country and rock charts.

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Primary Wave Music Partners with Spin Doctors https://www.digitalmusicnews.com/2024/06/11/primary-wave-music-partners-with-spin-doctors/ Tue, 11 Jun 2024 18:16:31 +0000 https://www.digitalmusicnews.com/?p=293425 Primary Wave Music partners with Spin Doctors for publishing and artist royalties

Photo Credit: Primary Wave Music (Spin Doctors)

Primary Wave Music has announced a partnership with alternative rock band Spin Doctors. The partnership will see Primary Wave partner with the band on their music publishing and artist royalties, as well as administering their upcoming album.

Through the partnership, the Spin Doctors will also have access to Primary Wave’s marketing team and publishing infrastructure, which includes digital strategy, licensing, sync opportunities, as well as film & TV production. The Grammy-nominated band has sold more than 12 million albums worldwide and performed more than 2,000 live shows.

Spin Doctors have toured with some of the biggest names in music including The Rolling Stones, Blues Traveler, and Phish. They’ve also performed at major music festivals including Woodstock, Glastonbury, and more over their 30-year history. Included in this deal are some of the band’s biggest hits across six studio albums such as “Two Princes,” “Little Miss Can’t Be Wrong,” “Jimmy Olsen’s Blues,” “What Time Is It?,” “Cleopatra’s Cat,” “You Let Your Heart Go Too Fast,” and more.

“Little Miss Can’t Be Wrong” was the band’s debut single and reached the Top 20 upon release. The follow-up single “Two Princes” is the band’s most well-known track, soaring to the Top 10 after its release. It received a Grammy nomination for “Best Rock Performance by a Duo or Group” in 1992. Propelled by the success of those two singles, their album Pocket Full of Kryptonite sold five million copies in the United States alone and landing at #3 on the Billboard Top 200 chart.

Spin Doctors have labored our entire career to create a catalog of super high caliber songs and we are absolutely certain it’s found the perfect partner to represent our catalog and continue to get our music out to the next generation and beyond,” says the band about the partnership with Primary Wave. “Thanks to everyone who has been involved along the way.”

“In the early 90s, during my law school days, I saw Spin Doctors at Nightingales multiple times,” adds Samantha Rhulen, Senior Vice President of Business & Legal Affairs at Primary Wave. “Never could I have imagined that 30 years later, I would be overseeing our partnership with the band here at Primary Wave. It has brought back a ton of memories for me, and I am thrilled they are now part of the PW family.”

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Starting a Record Label? Future-Proof Your Operation Now https://www.digitalmusicnews.com/2024/06/10/starting-a-label-future-proof-your-operation-now/ Mon, 10 Jun 2024 14:30:41 +0000 https://www.digitalmusicnews.com/?p=293107 Starting a Record Label? Future-Proof Your Operation Now

Starting a record label? Here’s how you can future-proof your operation early on.

The following comes from Lynn Lowe, President of Label and Publishing Administration at Music Services, a division of SESAC Music Group and partner of DMN. Music Services provides comprehensive licensing and administration services for independent record labels and music publishers.

Creating music is what artists love the most.  We get it and we love the songs as much as you do.  But, from the start of that first cut, artists need to put as much focus on protecting the    intellectual property, and properly planning for future success, even if that feels like a far-off dream right now. The temptation to act for today needs to be balanced by educated thinking for tomorrow. 

It’s thrilling to start a label as an artist, songwriter, or music lover, and it’s easier than ever. There are so many tools, technologies, and services to help manage every aspect of your business, from distribution to royalty collection. But as someone who’s spent two decades helping label owners clean up the mess after a well-intentioned start, I’m here to tell you: be slow to sign a deal until you get your house in order and build your systems as if success is already yours. Your future self will thank you for it.  Here’s five lessons learned from my career as a record label and music publishing administrator that will get you on the right track:

Think big before you sign.

It’s easy to be intrigued by free and easy-to-sign-up-for services when you’re just starting out, but instead, you should future-proof your agreements by adopting the mindset that you’re going to make it big, and that what you sign today will impact the years to come. 

A songwriter for one of the publishers we administer learned a song he co-wrote scored a valuable sync–but to his dismay, he realized that five years before, he had signed over his publishing to his manager. This meant that even after the songwriter had resecured these rights, the manager kept the songwriter share of that sync. The songwriter signed without thinking what a big opportunity might mean.

Good intentions don’t make you a good partner.  Systems do. 

A lot of cleanup is required in our world because people start with good intentions but have no idea who, what, or how they’re supposed to pay out royalties once they’ve collected them. And for a small operation, that cash flow can get confused with other expenses, leaving the label owner with lots of obligations—but no cash on hand. For example, you need to account for what you’ll owe producers and publishers for the tracks you’re collecting on, ideally setting aside 15-20% of your collections to pay these rights holders. Sadly, we’ve seen independent artists and labels, who had every intention of paying their collaborators, find themselves years behind on these payments, leading to debt and years of anxiety.


Before you’ve earned a penny from your releases, set up your systems to set aside a percentage of sales to pay artists, producers, publishers, and the songwriters the publishers represent. Also, make sure you have written agreements in place.  Even the best of friends with good intentions should have all the details ironed out before the first dollar is earned.  

Codes matter.

Make sure your Performance Rights Organizations songwriter and publisher IPI numbers are correct when collaborating and registering songs. Create a central point of truth to make sure you always get them right everywhere. Be meticulous with your data, and if you can’t, find someone who will for you.  

A song is a piece of art, but when you upload a song for distribution, the data has to be correct from the outset. You have to know the ISRC code is correct to link the master recording to the artist, and the IPI numbers are correct to link them to the correct songwriter and publisher.

This is not a minor detail. I have seen songwriters give out the wrong identifier and lose out on years of their royalties.  Managers and labels should support songwriters in ensuring this is handled correctly, as it will make a difference in the long run. These mistakes can take months to correct and cause a lot of heartache in the process.

Collect everything.  It all counts.

There are lots of ways for labels and artists to earn royalties, such as SoundExchange and other micro-sync avenues. It’s easy to look at a tiny revenue stream now and say it doesn’t matter. What if that turns into a steady stream? If you’re keeping track of things early on when it’s easy to manage, you won’t be caught off guard or miss out on a crucial revenue stream when it grows into something significant.

For example, I have repeatedly helped artists find tens of thousands of unclaimed royalties via SoundExchange. You need to sign up, of course, but you also need to maintain your account, making sure it includes all your works, and is connected to the correct bank account. Clients have had significant funds sent to dormant accounts, only to realize months later that they had sizable payouts waiting in some long-forgotten bank.

Cultivate a future-proof mindset.

Success is never guaranteed in the music business, but just imagine if you are successful. Will the deal that feels great right now make sense if you’ve scored a hit? What if that hit isn’t fully licensed? 

Adopt the mindset that the agreements you’re signing today will influence your money-making power years or decades from now. Because they really will. Don’t give your work away without really thinking through the alternatives, even if you aren’t sure what its commercial potential is.

And before you unleash a track on the world, make sure you have correct permissions for any sample or derivative work. Asking for forgiveness can lead to difficult decisions and to loss of significant revenue. Do the right thing, which in the case of clearances can take several months. That way, if things go well, you’ll be able to benefit fully from your and your artists’ hard work.

Starting a label can be an exciting endeavor and for many artists or creatives, and financially for many independent artists, it’s a beneficial thing to do. However, if you get the setup wrong or partner up with the wrong people (either nefarious or misinformed), you and the artists you bring on board can get in a world of hurt quickly and miss out on lots of money.

Administration is not the shiny side of the music industry, but it’s the engine. If you don’t want to dig into the data and the details of the business side of music, make sure you have a trustworthy partner that can navigate all the various deals and contracts on your behalf, and ensure you are creating sustainable systems to collect everything you’ve earned.  

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Canada’s CMRRA Distributes $78 Million in Mechanical Royalties in 2023, Up 9% https://www.digitalmusicnews.com/2024/06/06/canada-cmrra-mechanical-royalty-distribution-2023/ Thu, 06 Jun 2024 19:53:47 +0000 https://www.digitalmusicnews.com/?p=293126 Canada CMRRA mechanical royalties

Photo Credit: Berkay Gumustekin

The Canadian Musical Reproduction Rights Agency (CMRRA) distributed over $78 million in mechanical royalties in 2023, up almost 9% from 2022.

Toronto-based licensing and royalty administration organization for nearly 50 years, the Canadian Musical Reproduction Rights Agency (CMRRA), has announced their 2023 year-end fiscal results, which include the distribution of more than $78 million in mechanical royalties. That’s an 8.9% improvement from the year previous.

“We’re thrilled to have processed and distributed over $78 million dollars of mechanical royalties to our music publisher and self-published songwriter clients last year,” said Paul Shaver, president of CMRRA. “We are witnessing a significant uptick in music consumption, a trend that highlights the vibrancy and vitality of the industry, and which also emphasizes the growing demand for music across global audiences.”

The nearly 9% improvement was primarily driven by a 29%-plus increase in audiovisual post-synchronization, constituting higher organic consumption alongside revenue from additional services. International collections saw a 20% increase, while physical distribution channels experienced an 8% uptick, driven by the continued interest in vinyl. Online streaming saw continued growth of 3% from the previous year.

“We continue to implement strategic enhancements across our services to better meet the evolving needs of our clients,” Shaver adds. “Music publishers and self-published songwriters are at the heart of everything we do; their success fuels our innovation and drives us to continuously improve. We are committed to providing unparalleled support and opportunities for them to thrive in this ever-changing landscape.”

Among CMRRA’s 2023 highlights include its entering into a strategic partnership with the Copyright Society of Composers, Authors, and Publishers (COSCAP) to oversee the mechanical reproduction rights of its members; renewing a multi-year deal with SiriusXM and several other DSPs; continuing focus on building out its new publisher platform with SoundExchange; affiliating 247 new clients; and 25 new and returning industry partnerships.

“As we look ahead, we are excited to continue building on our achievements and further innovating within our industry,” reads a statement from the CMRRA. “We remain committed to enhancing our offerings and delivering exceptional value to our clients and partners and we look forward to another year of growth, collaboration, and success.”

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Spotify Accounted for More Than 42% of All U.S. Mechanical Royalties Prior to Its Pre-Bundling Shift, DMN Pro Analysis Reveals https://www.digitalmusicnews.com/pro/spotify-mechanical-pre-bundle-data/ Thu, 06 Jun 2024 03:45:26 +0000 https://www.digitalmusicnews.com/?post_type=dmn_pro&p=293012 Estimated Payable Mechanicals, U.S., February 2024 (Last Month Prior to Spotify Bundling Discounts) (Source: Digital Music News)

Estimated Mechanicals Paid, U.S., February 2024 (Last Month Prior to Spotify Bundling Discounts) (Source: Digital Music News/DMN Pro)

How much are streaming music platforms actually paying for publishing in the U.S.? Amid an intensifying battle over Spotify’s bundling and a corresponding mechanicals decline, here’s a comprehensive look at actual payout data preceding Spotify’s big move.

DMN Pro’s latest trove of exclusive data — sourced from actual mechanical payments receipts and documents — gives us the closest look yet at how Spotify’s mechanical royalty payments compare to other streaming platforms in the United States. That is, for the last month before Spotify switches a large percentage of its accounts to bundled status.

Report Table of Contents

I. Introduction: A Recap of Spotify’s Bundling Reclassifications and the Forecasted Mechanical Royalties Decrease

II. Streaming Services’ Compositional Royalty Calculations: A Methodology Overview

Graph 1: Total U.S. Paid Accounts (Not Users) by Music Streaming Service and Plan, February 2024

Graph 2: Leading Streaming Services’ Public Performance Payments by Individual Plan, February 2024

III. U.S. Mechanicals At a Glance — A Synopsis of How On-Demand Streaming Royalties Are Calculated Under Phonorecords IV

IV. Mechanical Royalties by the Numbers: What Leading DSPs Are Paying in the U.S.

Graph 3: 2024 U.S. Mechanical and Performance Payments, Ad-Supported and Paid, by Service

Graph 4: Estimated Payable Mechanicals, U.S., February 2024 (Last Month Prior to Spotify Bundling Discounts)

V. How Will the Battle Over Spotify’s U.S. Mechanicals Play Out? A Summary of Near- and Long-Term Possibilities

Please note: unauthorized redistribution of this report is prohibited — thank you.


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UMP Germany, Electric Feel Europe Expand with Producer JUMPA https://www.digitalmusicnews.com/2024/06/05/ump-germany-electric-feel-europe-expand-with-producer-jumpa/ Wed, 05 Jun 2024 18:57:15 +0000 https://www.digitalmusicnews.com/?p=292976 Electric Feel Europe Jumpa publishing agreement

Photo Credit: Electric Feel Europe

Universal Music Publishing Germany and Electric Feel Europe have announced they have signed producer and songwriter Jumpa to an exclusive, worldwide publishing agreement. The deal builds upon his previous admin deal and adds UMPG as a co-publisher.

Jumpa is one of today’s most in-demand hitmakers, penning hits for some of the biggest names in hip-hop and pop music including Apache 207, Udo Lindenberg, badmómzjay, Bausa Sido, Loredana, Montez and Kool Savas, among others.

In February 2024 Jumpa was awarded the GEMA Music Authors’ Prize in the category “Most Successful Song” for “Komet” by Udo Lendenberg & Apache 207, which was the longest-running number one hit of all time.

Throughout his career, Jumpa has written and produced countless Top 10 hits, including “Fühlst Du das auch” by Apache 207, Loredana and Mozzik’s “Rosenkrieg,” and “Auf die Party” with badmómzjay and Domiziana. More recently, Jumpa worked on badmómzjay’s newly released album Don’t Trust Bitches, where he co-produced 14 tracks, as well as Apache 207’s single “Loser” which made its debut at number 2 on the German Single Charts.

“We are absolutely thrilled that Jumpa is part of the UMPG and Electric Feel family,” adds Thomas Vidovic, Managing Director Universal Music Publishing Germany / SVP Austria & Switzerland. “He is one of the greatest producers of our time. Coming from the German rap scene, he has been shaping the sound of a whole generation. With countless hit songs in the books, his talent and skills are still awe-inspiring. We’re so much looking forward to working with him and seeing his star rise outside of Germany.”

“I’m excited to announce that I’ve renewed my contract with Universal Music Publishing and Electric Feel Publishing,” says Jumpa. “The past three years have been a journey of growth, challenges, and musical exploration. This renewal is a commitment to continue pushing boundaries and exploring new musical landscapes. Thanks to Universal Music Publishing and Electric Feel for their support.”

“Jumpa has proven several times over the last few years that he’s one of the most outstanding and innovative producers in Europe,” adds Niels Eberhardt, Head of Operations, Electric Feel Publishing Europe. “We’re really proud to extend this partnership, accompany him on the upcoming journey and are very excited about all future projects.”

The extension with Jumpa strengthens the collaborative agreement between UMP Germany and Electric Feel Europe, whose other signings include hit-producers Suena and Berky, as well as German artists such as Cloudy June or Luzi.

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Spotify’s Lead In the U.S. Is Narrower Than You May Think — Here’s Our Latest Streaming Music Market Share Report https://www.digitalmusicnews.com/pro/music-streaming-market-share-us-2024-weekly/ Thu, 30 May 2024 04:00:12 +0000 https://www.digitalmusicnews.com/?post_type=dmn_pro&p=292462

Where do streaming services like Spotify, Apple Music, and Amazon Music stand in the world’s largest music market? Here’s our detailed look at leading platforms’ subscriber stats as well as key streaming landscape takeaways, exclusively for DMN Pro subscribers.

Last week, subscriber data leaked to Digital Music News revealed that Spotify remains atop the heap of streaming music platforms, at least in the US. But despite Spotify’s tally of more than 50 million subscribers stateside, Apple Music is narrowly ahead in the all-important category of individual subscriptions. And when it comes to overall subscribers across all packages, Apple Music isn’t as far behind as previously thought.

Despite being publicly traded, Spotify, Apple, and Amazon have historically opted against breaking down their stateside music streaming shares. In its earnings reports, Spotify attributes monthly active users and subscribers to regions like North America as opposed to particular nations, for instance. And when disclosing its own subscribers, Apple only provides a grand total for all subscription services and bundles without breaking down music-specific subscriber details.

Now, that changes: thanks to a trove of market share data shared with Digital Music News, we have a far better picture of how streaming music platforms are stacking up — at least in the critical U.S. market. The data therein, including plan-specific subscriber numbers and mechanical rates, helps paint what could be the clearest picture to date of domestic streaming market share.

Report Table of Contents

I. Introduction: A Recap of Music Streaming Platforms’ Existing U.S. Market-Share Data

II. Spotify Subscribers by the Numbers: Where the Service Is Leading Apple and Where It’s Trailing in the U.S.

Graph: Streaming Platforms’ U.S. Market Shares and Year-Over-Year Growth As of February 2024

Graph: Spotify Consumers’ Outperforming Net Purchase Intent

III. Are Spotify and Apple Music Competitors Gaining Ground in the States? Here’s What Q1 2024 Data Says

IV. A Brief Look At Mechanical Rates Amid An Intensifying Battle Over Bundling

Graph: The Per-Stream Mechanical Rates of Spotify and Others by Plan, February 2024

Graph: Spotify v. Amazon Music — Mechanicals Payable and Pay Per 1,000 Streams by Plan, February 2024

V. As Streaming Competition Intensifies, Additional Data Could Show Where the U.S. Market Stands

 

Please note: redistribution of this report without permission is not authorized. Thank you.


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Former Spotify Executive Criticizes the Company’s Bundling Strategy to Lower Songwriter Royalties: ‘Clearly Violates the Spirit of the Agreement’ https://www.digitalmusicnews.com/2024/05/29/ex-exec-criticizes-spotify-bundling-practice/ Thu, 30 May 2024 02:59:55 +0000 https://www.digitalmusicnews.com/?p=292407 Former Spotify exec criticizes company's bundling move

Photo Credit: Patrick Perkins

Spotify’s Former Global Head of Publisher Licensing Adam Parness says Spotify’s move to switch its subscriptions to bundles is both “misguided and unfair.”

Parness published an op-ed in Billboard to decry the new move, calling it an “ill-informed attempt to deprive songwriters and music publishers of their rightfully earned U.S. mechanical royalties.” Billboard estimates the losses will amount to $150 million per year for songwriters and publishers, increasing as bundled subscription revenue grows.

Parness frames the piece not as a way to disparage Spotify, but as an appeal to the company to do the right thing. Spotify’s bundling is technically legal, but Parness argues the ethical damage of not compensating songwriters extends beyond the bundling loop hole Spotify has exploited in the Phonorecords IV settlement. According to that agreement, bundled services are permitted to pay a lower mechanical royalty rate to publishers and songwriters than standalone music subscription services.

The Mechanical Licensing Collective (MLC) has taken issue with the move, filing a lawsuit against Spotify that alleges it will underpay royalties now that the bundled subscription is live. Parness agrees. “Spotify has an unfortunate and documented history of punching down at songwriters and music publishers,” he writes. “Spotify presumably entered into the [Phonorecords IV] settlement with the full knowledge and acceptance that it was agreeing to pay the revenue share rates of 15.1% to 15.35% upon a properly undiluted revenue base—as it had been doing until March 2024.”

Spotify’s move to switch all current subscribers to a new bundle with audiobooks dilutes that revenue percentage from 15.1% to as little as 12%. That effectively drops Spotify’s mechnical royalty rate below the rate established by the Phonorecords III decision, which raised the mechanical royalty rate from 10.5% to 15.1% over a five-year period.

Parness says he believes Spotify is attempting to reduce its royalties to songwriters and music publishers to use the displaced royalties to offset the audiobooks cost and improve its bottom line. “Spotify’s reframing of the vast majority of its subscription services as bundled subscription services is a work of fiction,” Parness continues. “It has done so by launching a standalone audiobooks access tier that does not appear commercially attractive to users and was launched to support its ‘bundling’ strategy.”

The MLC took issue with this strategy in its recent lawsuit against Spotify, stating the audiobooks add-on is largely hidden on Spotify’s website. Spotify’s website steers new users to subscribe to its basic Individual Premium tier—while the audiobooks access tier is only available in the United States. (The U.S. is also the only counotry to which the Phonorecords IV settlement and statutory framework applies).

“At minimum, Spotify’s action clearly violate the spirit of the agreement, and to say otherwise is blatantly dishonest,” Parness says of Spotify’s statement about the MLC and publishers agreeing to the bundling provisions in the Phonorecords IV settlement. “To the extend Spotify may believe it has outsmarted songwriters and music publishers, there should be no pride in ownership.”

Parness says Spotify is free to spread its wings and expand its business, but the company’s overall gross margins have been dragged down by the company’s interest in the podcast space. “Not all of those investments, including content deals and acquisitions of other companies, have produced positive results,” he continues. “The royalties Spotify pays to songwriters and music publishers are not the problem, nor are the royalties it pays to others. Spotify receives tremendous value in exchange for the mechanical and other royalties that it pays for music works—songwriters should not be treated by Spotify as a drag on its margins.”

“To pay slightly north of 15% of revenue for songwriters’ creative output is a gift, and there is absolutely no reason for Spotify to sneak around corners to dilute songwriters’ income. It is beyond pale, even relative to actions that Spotify has taken against songwriters and publishers in recent years.”

Parness respectfully appeals to Spotify and asks them to voluntarily honor the Phonorecords IV settlement on the intended terms “that you know fully well were agreed to and promptly reverse course on your misguided attempts to reduce U.S. mechanical royalties.” Read the full appeal to Spotify’s sense of of ethics here.

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Queen’s Catalog Might Sell After All — Sony Music Reportedly in Talks for $1 Billion Deal https://www.digitalmusicnews.com/2024/05/29/queen-catalog-deal-sony-music-may-2024/ Thu, 30 May 2024 01:34:33 +0000 https://www.digitalmusicnews.com/?p=292471 queen catalog

The Queen catalog might be sold after all, as Sony Music is reportedly in talks for a $1 billion purchase agreement. Photo Credit: Koh Hasebe

It turns out the Queen catalog might sell for around $1 billion after all – albeit to Sony Music Entertainment (SME) as opposed to Universal Music Group (UMG).

The latest rumors of a massive transaction for Queen’s music IP came to light in a Bloomberg piece today. Perhaps not coincidentally, it’s now been one year to the day since CNN reported on a possible agreement between UMG and Disney Music Group for Queen’s body of work. (Queen inked a far-reaching pact with Disney Music over three decades ago.)

In that report, the outlet cited an anonymous source who suggested that a deal was “‘expected to close within one month.’” While the inherent complexity of catalog transactions sometimes makes for longer-than-expected processes, the window has, of course, come and gone. Furthermore, Disney Music at the time said it didn’t have plans to sell in any event.

Nevertheless, one year and several high-profile IP sales later, Bloomberg is indicating that Sony Music could be moving to acquire Queen’s catalog.

Citing anonymous and purportedly in-the-know sources, the newer article points to ongoing discussions involving SME and “another investor” for the ultra-valuable song rights. Said rights, encompassing hits such as “Bohemian Rhapsody” and “Another One Bites the Dust,” could fetch upwards of $1 billion, the text reiterates.

With trademarks as well as name and likeness rights factoring into a growing number of music-IP plays – among them Iconoclast’s deal for the Tony Bennett catalog and Pophouse’s KISS tie-up – the potential Queen investment may also cover merch and “other business opportunities,” per Bloomberg.

The relevant parties have yet to comment publicly on the sale rumors, and the appropriate article doesn’t mention Disney Music at all. Especially given the above-described 2023 report on a possible Queen catalog deal, it goes without saying that an agreement might not come to fruition.

Even so, we’ve explored in detail the substantial capital that’s continuing to float around the catalog arena; in spite of the uncertain economic climate, investors have earmarked billions for music IP. Furthermore, Sony Music, far from sitting on the sidelines amid the subsector’s resurgence, wrapped a record-setting investment in Michael Jackson’s catalog in February of 2024.

Though the corresponding financials haven’t been publicly confirmed, sources have attached a $1.2 billion overall valuation to the catalog, in which SME bought a 50 percent interest. Notwithstanding the sizable price tags associated with different song rights, that valuation is seemingly the largest to date for a single body of work.

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UMP China Signs Cheerful Music to Global Publishing Deal https://www.digitalmusicnews.com/2024/05/28/ump-china-signs-cheerful-music-to-global-publishing-deal/ Wed, 29 May 2024 03:10:05 +0000 https://www.digitalmusicnews.com/?p=292354 UMP China Cheerful Music

Photo Credit: UMP China (Grace Gao, UMP China | Snow J, Founder & CEO of Cheerful Music)

Universal Music Publishing China (UMP China) has announced it has signed Cheerful Music to an exclusive worldwide publishing deal—excluding mainland China.

The Cheerful Music catalog boasts major hits including “YI XIAO JIANG HU (KE MU SAN),” which has amassed more than 50 billion views on Douyin, the Chinese version of TikTok. “XIAO CHENG XIA TIAN,” “TA SHAN HE,” and “BAN SHENG XUE,” each have claimed top spots on several of China’s music streaming services.

Founded in 2019 with its roots in Shenzhen, Cheerful Music boasts a diverse and talented lineup of Chinese songwriters and artists, such as Snow. J, Silk Ye, Cindy Dong, KeyKey, Huang Junze C-Jay, He Zhu, Yu Tang, and Reddi. The company’s London office is central to its international strategy, fostering collaboration with international talents like Erik Frank, Grand Nights, Shell Tenedero, Chloe Rose, J.O.Y., and Milan D’Agostini.

The success of “YI XIAO JIANG HU (KE MU SAN)” serves as a testament to Cheerful Music’s hit-making capabilities with 15 million user-generated clips on Douyin. The influence can be seen across diverse platforms including social media, movie premieres, and international dance competitions. The song also conquered the YouTube Short Video charts in South Korea.

“From the outset, our vision has been to create music that resonates worldwide,” says Founder & CEO of Cheerful Music, Snow J. “The launch of our London office in 2023 has been pivotal; it positions us to collaborate directly with international artists and songwriters, and to connect with a diverse global audience.”

“International expansion is intrinsic to our ethos, and I am profoundly confident that our partnership with UMP China will proper our journey of internationalization even further.”

“Cheerful Music has an adept ability to produce music that resonates with the current trends, crafting hits that enjoy widespread popularity around the globe,” adds Grace Gao, Vice President, Finance and Operations of UMP China. “It’s exciting to engage with a company that not only brings creative vitality but also has the capacity to shape cultural landscapes. We anticipate that by working together, we can further enhance the international allure of their music and continue to create successful outcomes in the global market.”

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Sweden’s STIM Reports Record 2023 Collections As International Streaming Revenue Nears $100 Million https://www.digitalmusicnews.com/2024/05/28/stim-collections-2023/ Tue, 28 May 2024 22:52:32 +0000 https://www.digitalmusicnews.com/?p=292308 stim collections

Stim’s Stockholm offices. Photo Credit: I99pema

Another year, another collections record for Sweden’s Svenska Tonsättares Internationella Musikbyrå (STIM), which has reported all-time-high revenue of $293.22 million (SEK 3.1 billion) for 2023.

The more than century-old STIM published its nearly 100-page 2023 annual report today, after disclosing strong 2022 financials a little less than one year ago. Digging into Microsoft’s translation of the newer resource, STIM identified record showings “in virtually all” categories, including public performances in businesses ($21.45 million/SEK 226.79 million, up 13% year over year).

(STIM in the voluminous 2023 recap even covered the expansion of certain restaurants, like Bastard Burgers, that evidently have the appropriate licenses in place. Since its 2016 founding, the burger chain has opened a whopping 70 locations in Sweden, population 10.5 million, the report shows.)

Far more detailed than the reports of several other societies, STIM’s 2023 analysis further breaks down public performance revenue by specific categories, including but not limited to quick-growing areas like hotels ($3.86 million/SEK 40.90 million, up 28% YoY) and clubs ($1.81 million/SEK 19.13 million, up 76.9% YoY).

Meanwhile, revenue attributable to live performances increased by about the same amount from 2022, to $12.52 million (SEK 132.52 million), with concerts and festivals rather predictably accounting for the lion’s share at $11.58 million (SEK 122.56 million).

Next, radio and television revenue improved by 7.7% YoY to a combined total of $36.13 million (SEK 382.3 million); most of the gain derived from Swedish TV collections growth, according to the organization. STIM pointed to $89.02 million (SEK 941.80 million) in non-streaming revenue from international affiliates (up 8.3% YoY) as well, also taking the opportunity to tout the financial benefits of its ICE association.

Building on that, global music streaming revenue, chalked up particularly to “Online ICE,” jumped almost 30% YoY to $99.17 million (SEK 1.05 billion) in 2023. The category therefore contributed over a third of the society’s revenue for the year. Miscellaneous licensing as well as domestic online collections (streaming and VOD), for their part, neared $28.35 million (SEK 300 million) in total.

All told, group-wide STIM operations delivered 2023 profit of $3.87 million (SEK 39.95 million) – down from $5.63 million (SEK 59.58 million) in 2022 but still up substantially from pre-pandemic 2019 and its $267,341 (SEK 2.83 million).

On the membership side, STIM welcomed 3,606 songwriters and publishers in 2023, expanding its ranks past the 105,000 mark, per the report. That total signifies the “second most per capita in the world, after Iceland,” the non-profit drove home.

Earlier today, PRS for Music reported record financials (and membership growth) of its own for 2023, and the previously mentioned ICE just recently announced that it had distributed over €1 billion during a 12-month stretch for the first time.

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PRS for Music Reports Record $1.4 Billion in Collections for 2023, When Membership Grew ‘More Than in Any Previous Year’ https://www.digitalmusicnews.com/2024/05/28/prs-for-music-collections-2023/ Tue, 28 May 2024 17:01:16 +0000 https://www.digitalmusicnews.com/?p=292272 prs for music distributions

PRS for Music CEO Andrea Czapary Martin, whose society has reported close to $1.4 billion in 2023 collections. Photo Credit: PRS

PRS for Music has officially announced almost $1.4 billion in collections (up 12% from 2022) for 2023, when distributions exceeded a record $1.2 billion.

London’s PRS for Music shed light on its 2023 showing today, less than one week after ICE (which it co-founded) touted a $1.09 billion/€1 billion annual distributions milestone. Running with the newer data, PRS for Music identified $1.21 billion (£943.6 million) in songwriter, composer, and publisher payouts for 2023 – an increase of 12.8% and $137.20 million/£107.4 million from 2022.

And as mentioned, collections also improved in 2023, albeit by roughly 12% year over year (YoY) to $1.38 billion/£1.08 billion. Expanding on the point, PRS for Music took the opportunity to emphasize that collections have more than doubled, with a 121% annual payout increase of $661.69 million (£518 million), across the past decade.

Digging into interesting takeaways concerning the 2023 totals, PRS acknowledged an 8.5% YoY bump in online collections (encompassing streaming, video games, and video on demand) at $468.35 million (£366.5 million) – and a 23.2% YoY hike in payouts at $460.46 million (£360.3 million). Top-performing streaming tracks from member writers included Raye’s “Escapism” and Rema’s “Calm Down,” PRS relayed.

Next, collections from international usages spiked 25.9% YoY to $433.56 million (£339.3 million), with payouts rising 19.35% to $362.13 million (£283.4 million) between 2022 and 2023, the Nexus program creator communicated. Europe remained the largest contributor to that category ($231.32 million/£181 million in collections, up 23% YoY), though royalties from North America rose 25% YoY to $134.13 million (£105 million).

Rounding out PRS’ 2023 financials, the use of music in public establishments fueled collections of $321.60 million/£251.7 million (up 10% YoY) as payouts experienced a comparatively modest 2% YoY uptick to $240.50 million/£188.2 million.

Lastly, the Audoo- and Orfium-partnered entity, having recorded its single-largest royalty payment ever in Q4 2023, disclosed a cost-to-income ratio of 9.2% for 2023, down slightly from 2022’s 9.3%. All told, the over century-old society said it represented 41 million works (up 12.6% YoY) in 2023, as its membership grew by a record 10,000 on the year.

Addressing the results, CEO Andrea Czapary Martin celebrated PRS’ “remarkable performance in 2023” and zeroed in on her vision for the above-noted Nexus program, which aims to improve metadata and matching.

“With our focus on innovation and strategic partnerships, including the recent pioneering Project Nexus,” the PRS for Music head said in part, “we’re shaping the future of our business and redefining how rights are managed globally. For 110 years we have existed to ensure that every music creator receives fair compensation for their artistry, wherever and whenever their music is played.”

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Spotify Tops 50 Million Subscribers In the US — Though Apple Music Is Winning In the Most Important Subscriber Category https://www.digitalmusicnews.com/2024/05/23/spotify-apple-music-subscribers/ Fri, 24 May 2024 06:15:55 +0000 https://www.digitalmusicnews.com/?p=291883 Apple Music vs. Spotify

Is Spotify as dominant as we think? (Photo by Qimono, modified by DMN)

According to recent data verified by Digital Music News, Spotify now has more than 50 million paying subscribers in the US. But Apple Music is bigger in the most lucrative subscriber category.

In seemingly every music industry discussion, Spotify is regarded as the dominant giant in the streaming music space. But just how dominant is Spotify when compared to rivals like Apple Music, Amazon Music, and YouTube Music, particularly in the US?

According to a tranche of royalty data shared by a major publisher and verified by Digital Music News, this game is more competitive than we previously thought.

Per the data — specifically for February of this year — Spotify has more paying subscribers overall than Apple Music when all plan packages (individual, family, student, and others) are considered and weighted. But when it comes to the most valuable package — the individual subscriber plan — Apple Music is beating Spotify in the United States.

The revelation could be critical given the contentious battle that has now emerged between Spotify and the music publishing industry. Let’s break these numbers down.

At a top level, Spotify’s overall subscriber total in the United States is more than 50 million, which easily beats Apple Music’s tally of nearly 42 million*. That is a lead of more than 20%, though Spotify is getting edged out by Apple in the lucrative ‘Individual Subscriber’ category.

(Update: in our original post, we mistakenly tallied Apple Music’s approximate US-based subscriber total at 34 million; the actual weighted figure is 41.7 million).

In this important category, Spotify counts a less impressive 20.2 million subscribers compared to Apple Music’s 20.8 million.

Of Apple Music’s total, 19.1 million are conventional individual subscriptions, with approximately 1.73 million coming from packaged Apple One subscriptions that include Apple Music, Apple TV, Apple Arcade, and iCloud for a discounted price.

Spotify’s 50+ million total is buoyed by Family, Duo, and Student plans, which carry certain multipliers or discounts for royalty-calculation purposes as determined by the MLC and publishers for royalty calculation purposes (for example, family plans receive a 1.75x multiplier applied by certain publishers, while Student plans have a 0.5x multiplier applied).

Just recently, National Music Publishers’ Association (NMPA) president David Israelite pointed to Spotify’s ‘nearly 50 million subscribers,’ while data supplied to DMN — with appropriate multipliers — put Spotify’s subscription total at slightly greater than 50 million.

Importantly, the royalty multipliers shared with DMN differ from the methodology applied by Spotify itself. According to Spotify’s financial disclosures, subscribers are predictably counted as ‘1’ on individual subscriber and student plans. For Family and Duo plans, the number is determined by the actual number of family members or friends that join the account (for example, if only two additional family members join a plan that accommodates 6, then the total number of subscribers reported by Spotify is 3).

So, what does this mean for Spotify’s market share?

That’s a critically important question in the context of a heated legal battle erupting between Spotify and the music publishing industry. In its recent lawsuit against Spotify, the MLC pegged total damages from Spotify’s bundled music plans—and the royalty discounts that come with them—at approximately $150 million annually. However, that figure may assume a more dominant market share position.

Last year, the NMPA tallied 44.4 million Spotify subscribers in the US, compared to 32.6 million for Apple Music. The figures pegged Spotify with an approximate US-based market share of 38% amongst rival DSPs, at least using the competitive platforms presented in the member meeting.

On that note, we’re still collecting more detailed 2024 data on subscriber counts for other streaming platforms like Amazon Music. So stay tuned for more updated market share estimates.

Overall, Spotify counts 239 million paying subscribers worldwide, across all tiers, per the company’s most recent quarterly earnings call.

This isn’t the first time that Apple Music has seriously challenged Spotify in the US.

In 2018, Digital Music News first reported that Apple Music had surpassed Spotify’s total subscribers in the United States. That followed an earlier report in the Wall Street Journal that pointed to a faster rate of subscriber growth at Apple Music. Since that point, the platforms have remained extremely competitive, with Spotify also battling Apple on antitrust grounds in the US and Europe.

Apple doesn’t release music-specific subscriber data, and Spotify doesn’t break down US-specific (or any country-specific) subscriber information. Neither company agreed to share US-specific subscriber data for this article.

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Are Music IP Acquisitions Slowing Down? Here’s What the Data Says Through 2024’s First Five Months https://www.digitalmusicnews.com/pro/music-ip-ytd-report-may-2024-weekly/ Thu, 23 May 2024 05:00:41 +0000 https://www.digitalmusicnews.com/?post_type=dmn_pro&p=291692 A breakdown of publicly announced catalog acquisitions between January-May 2023 and 2024. In the 2024 period, May encompasses the month’s first three weeks.

A breakdown of publicly announced catalog acquisitions between January-May 2023 and 2024. In the 2024 period, May encompasses the month’s first three weeks.

Amid an uncertain economic climate and cooling industry funding, how are catalog acquisitions faring in 2024? We crunched the numbers to see where the space is positioned and where it could be heading during the rest of the year.

This latest check-in on the song-rights arena is made possible by our Music IP Acquisition Tracker, a comprehensive, searchable database of catalog deals large and small. From the Hipgnosis Songs Fund bidding war to Pophouse Entertainment’s reportedly $300 million acquisition of the KISS catalog, much has changed since we last broke down the multibillion-dollar subsector.

Report Table of Contents

I. Introduction: A Recap of the Catalog Space’s Early 2024 Showing

II. Catalog Deals’ Volume Has Slowed in 2024 — Does the Decrease Paint a Complete Picture?

Graph: Music Industry IP Acquisitions, January-May 2023 and 2024

III. Confidence in Catalogs: With Capital Commitments Exceeding $3 Billion, Is a Wave of Purchases Forthcoming?

Graph: By the Numbers: 2024’s Catalog Capital Commitments

IV. The Bottom Line: Where Will the Catalog Space Go During the Rest of 2024?

Please note that redistribution of this report is prohibited. Thank you.


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ICE Reveals €1 Billion Annual Distributions Milestone, Emphasizes Its ‘Very Strong Focus on Scalability’ https://www.digitalmusicnews.com/2024/05/22/ice-royalties-distributions-milestone/ Wed, 22 May 2024 23:44:49 +0000 https://www.digitalmusicnews.com/?p=291728 ICE WCM euro digital licensing admin

Photo Credit: ICE Services

ICE has officially cracked €1 billion (currently $1.08 billion) in annual distributions for the first time since its 2016 launch.

The PRS-, STIM-, and GEMA-founded company reached out today with word of that milestone, which arrived specifically between May of 2023 and April of 2024. As recapped by ICE (the International Copyright Enterprise), nearly three and a half years passed before it topped €1 billion in cumulative distributions, compared to about two years for the second billion.

Running with those figures and the mentioned milestone, ICE’s overall distributions to date total approximately $4.87 billion (€4.5 billion). Behind that sizable sum, the business, which scored an expanded Warner Chappell pact last month, pointed to “multi-stage invoicing,” the Licensr self-service licensing offering, and an auditing program for DSPs.

Notwithstanding these and other offerings, ICE’s showing is, of course, ultimately dependent on royalty management. On this front, the London-headquartered hub, which posted turnover of $59.20 million (€54.69 million) and profit of $11.45 million (€10.58 million) for 2022, says it represents north of 330,000 rightsholders.

Besides the Arctic Rights Management owner Peermusic (which reupped in April), ICE Core counts as members the aforesaid PRS, STIM, and GEMA as well as BMI, Sabam, AKM, Concord, and (despite a few reported hiccups) Songtrust, to name some.

Addressing the “major achievement” on the royalties side, ICE CEO Peter de Mönnink underscored “the value of music and the importance of songwriting” – while also touching on the platform-optimization projects that are underway.

“The increasing scale of the ICE Hub is paramount to offer the highest and most efficient distributions for songwriters and composers,” the former Talpa Network head relayed in part. “It is ICE’s belief that this scale will be evermore important to ensure fair and sustainable royalty flows for rightsholders in the online space. This is not only our mission, but also our passion.

“To support our ongoing efforts,” the exec continued, “and address the complexities of royalty management, ICE has a very strong focus on scalability facilitated by its ongoing platform development. Whilst this innovative undertaking presents significant challenges, we are pleased with the progress we have made. ICE is now moving step by step into deployment phases of this advanced platform.”

In remarks of her own, COO Rachael Naylor touted ICE’s “higher ratings across all service areas” in recent client surveys.

“We do not underestimate the trust placed in us by our customers to deliver critical and reliable royalty services,” Naylor communicated in part, “and are driven to continue to transform internally to achieve the right mix of technical, service and process optimisation all delivered by truly committed and expert teams.”

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NMPA Calls on Congress to Allow Direct Music Publisher Negotiations with Streaming Platforms — Here’s Their Proposal https://www.digitalmusicnews.com/2024/05/21/nmpa-wants-direct-publisher-negotiations-with-dsps/ Wed, 22 May 2024 04:51:52 +0000 https://www.digitalmusicnews.com/?p=291580 NMPA calls on congress to allow direct music publisher negotiations with streaming platforms

Photo Credit: NMPA

The National Music Publishers’ Association (NMPA) is now calling on Congress to allow music publishers to negotiate directly with streaming platforms like Spotify — as the fallout from Spotify’s bundling move continues.

Spotify’s bundle-happy plans have left the music industry less than enthusiastic, with the National Music Publishers Association (NMPA) asserting the change will cost upwards of $120 million in reduced mechanical royalties for artists each year. As a result, the NMPA is recommending that Congress allow music publishers to negotiate directly with streaming platforms like Spotify to leverage more negotiating power in the sector.

In essence, the proposal — advanced by NMPA chief David Israelite — would give publishers the right to directly negotiate terms with Spotify, while also maintaining the MLC to handle existing, statutory rates. Israelite clearly pointed to Spotify’s sneaky bundling shenanigans as motivation for the proposal.

Here’s the NMPA’s full letter:

Dear Chair Durbin, Ranking Member Graham, Chairman Jordan, and Ranking Member Nadler:

The Music Modernization Act (MMA) has offered not only songwriters and music publishers, but also digital service providers (DSPs), unprecedented benefits. However, the bill has amplified the need for corrections to the century-old compulsory license governing their work.

Large, foreign-owned companies, like Spotify, should not enjoy unfair advantages over American songwriters because of outdated federal policy. By making one simple change, Congress can undo a more than 100-year-old mistake in the compulsory license and ensure songwriters and music creators continue to benefit from their creative efforts.

How did we get here? Almost six years ago, members of the House and Senate Judiciary Committees came together to pass the MMA, a landmark piece of copyright legislation for the age of digital music streaming. The MMA took important steps forward in improving the compulsory license imposed on songwriters and music publishers by creating the Mechanical Licensing Collective (MLC) to administer a blanket license under Section 115 of the Copyright Act, which is taken by digital music services.

The MLC increased transparency through a public database, furthered licensing efficiency through a central administrator, and improved the process for distributing musical work royalties. However, the benefits did not extend to, or remedy, the ongoing issues faced by rights holders subject to the government rate-setting process.

The continued abuse of the statutory system by digital services, most recently Spotify, has made clear that additional action by Congress is needed. The royalty rates paid to musical work copyright owners for uses of those works under the Section 115 blanket license are set in a proceeding before the Copyright Royalty Board (CRB), within the Library of Congress, once every five years. In these proceedings, music publishers and songwriters must face off against some of the biggest tech companies in the world: Spotify, Apple, Amazon, Google, among others to establish rates for the use of musical works.

Because the law prevents private negotiations in a free market, publishers and songwriters have seen ongoing abuse of the statutory system and CRB rate-setting process with little ability for recourse. Most recently, Spotify has found a new way to game the statutory rate system to underpay rights holders by hundreds of millions in royalties.

In March, Spotify began manipulating the compulsory licensing rules and reclassified its premium subscription music service, along with almost 50 million subscribers, into what it is calling a “bundle.” The benefit to taking this action is, under the compulsory royalty rates, bundles attribute less revenue — and therefore pay less in royalties — to the music than a premium subscription music service.

Spotify has taken a part of its music service that was previously offered to consumers for free, audiobooks, and it is now calling audiobooks a bundle with its music service to substantially reduce the musical work royalties owed.

Those who do operate in a free market, such as record labels, have negotiated protections against these bad faith tactics. However, music publishers and songwriters have no such leverage under the CRB to do so.

Fortunately, there are solutions Congress can enact that would preserve the benefits of the MMA and the MLC while providing songwriters and publishers a better chance to compete on a level playing field with Big Tech firms like Spotify. Rather than picking who wins and who loses, Congress should allow rights holders the choice to license through the MLC using the statutorily set royalty rates or to withdraw from the MLC and operate in a free market if they meet certain conditions.

If copyright owners chose to withdraw their copyrights from the blanket license, currently administered by the MLC, they would be required to do the following:

        • Require all rights holders who exercise this option to provide 6 months’ notice to the Register of Copyrights and the MLC;
        • Require that the withdrawing rights holders ensure their musical work copyrights and ownership interests are registered in the MLC’s public database;
        • Require the MLC to flag those rights holders and their catalogues as withdrawn from the MLC blanket license and subject to voluntary license negotiations; and
        • Require copyright holders to maintain with the MLC database current, up-to-date contact information, which would be used to contact for licensing.

This would give rights holders the option to stay within the current compulsory system or to operate within a free market. It would also restore basic principles of fairness to the market by requiring streaming platforms to deal with music makers as partners.

Finally, it would provide a needed point of leverage for songwriters and music publishers to negotiate with streamers, like Spotify, who can otherwise use their power to bend government regulations to their advantage. All of this could be accomplished by building on the successful infrastructure created by the MMA and the MLC.

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What’s Wrong With Direct Publisher Licensing? Everything, According to Spotify and the Recording Industry https://www.digitalmusicnews.com/2024/05/21/direct-music-publisher-licensing-spotify/ Wed, 22 May 2024 03:46:21 +0000 https://www.digitalmusicnews.com/?p=291645 Where will Spotify's bundling adventure take us next?

Where will Spotify’s bundling adventure take us next?

On Tuesday, NMPA president David Israelite advanced a different licensing schema to members of Congress that would change the game for music publishers — and complicate the game for everyone else.

Just moments after the Mechanical Licensing Collective (MLC) filed suit against Spotify, the National Music Publishers’ Association (NMPA) dropped another bomb. In a letter floated on Tuesday (May 21st) by NMPA chief David Israelite to members of Congress (see the full text here), a brand-new licensing schema was advanced.

Under the proposed update, the MLC and statutory mechanical licensing would remain, but music publishers would also have the freedom to negotiate their rates directly with streaming platforms like Spotify.

This is the type of change that music publishers have always wanted. However, Israelite was clearly motivated by Spotify’s sneaky shift into bundling and the statutory licensing discounts that come with it.

“The continued abuse of the statutory system by digital services, most recently Spotify, has made clear that additional action by Congress is needed,” Israelite wrote while pointing to routine, fraught renegotiations before the US Copyright Office’s Copyright Royalty Board (CRB).

“In these proceedings, music publishers and songwriters must face off against some of the biggest tech companies in the world: Spotify, Apple, Amazon, Google, among others, to establish rates for the use of musical works.”

But what if music publishers could call the shots with direct licensing negotiations, just like record labels? “Rather than picking who wins and who loses, Congress should allow rights holders the choice to license through the MLC using the statutorily set royalty rates or to withdraw from the MLC and operate in a free market if they meet certain conditions,” the proposal continues.

All of which sounds like a fantastic change for music publishers and a long-overdue shift — though for obvious reasons, Spotify would rue the day that publishing direct-licensing arrived.

There are many details that need to be clarified. But under the new plan, if a publisher or songwriter decides they’d like a higher rate than what is currently offered under statutory rates, they simply withdraw their catalog and demand more. Spotify (and other streaming platforms) must then negotiate or risk losing the song entirely.

That’s great for publishers and a worthwhile shift toward normalizing music licensing. But for Spotify, there’s plenty to hate here. For starters, licensing costs for publishing IP would quickly increase, and recording owners might not budge. The result is that songs would become more expensive to license, which is bad news for Spotify’s profitability ambitions.

Wall Street, now firmly focused on profitability instead of growth and pushing Spotify in this direction, would also seriously dislike this change given that Spotify’s core asset — the music — could become significantly more expensive. Those riding the wave on Spotify’s stock (SPOT) might decide it’s an opportune time to sell.

But beyond the direct content costs, there would be serious administrative and logistical issues to weather. Instead of sending data to the MLC and writing a fat check, Spotify would suddenly have to manage millions of individual negotiations with songwriters and publishers that want more money.

Nearly every IP owner behind a song with significant plays will likely demand more cash. And this isn’t something you can staff up against. Instead, Spotify would have to retool its entire licensing framework to manage millions of micro-negotiations at scale.

That’s not to say this isn’t the right answer and a step in the right direction. But it’s not a step that Spotify ever wants to take.

And make no mistake, there will be prices Spotify won’t pay, which means more grayed-out content and more dissatisfied customers. Though the exact details haven’t been hashed out, it’s possible that a single songwriter could remove a popular track from Spotify at any time, simply because they want a higher rate that Spotify doesn’t want to pay.

Which brings us to the next loser in this scenario: the labels.

It’s not that recording owners aren’t winning in this equation. They enjoy unfettered, direct negotiations with platforms like Spotify and receive far more than their music publishing counterparts. Theoretically, publishers should enjoy the same freedoms, though that doesn’t mean recording owners want to hand over a slice of their (far more significant) pie.

There’s a reason major label bigwigs haven’t been rallying to the defense of music publishers. Any substantive gains by music publishers probably translate into less money for recordings. Beyond that, a shift towards publisher direct licensing also means more disruption to the smoothly running, streaming gravy train.

Suddenly, publishers and songwriters can yank their content if they’re unhappy. At any moment, Spotify and other streaming platforms can get dinged by serious content holes and spotty selections.

Right now, Spotify has everything listeners want — except for the now-rare holdout like Garth Brooks. But what if users were routinely hitting unplayable potholes? None of that is good news for the billion-dollar streaming music pipeline that is now express-pumping cash into every major label coffer.

That might explain why major label CEOs like Universal Music Group’s Lucian Grainge haven’t been vocal on Spotify’s bundling fiasco. And why they’ll likely remain disinterested in a direct-licensing future for music publishers.

For major recording owners like UMG, this boat is best left un-rocked.

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Otis Redding Estate Inks Sony Music Publishing Admin Deal: ‘One of the Most Significant Songwriters of Our Lifetime’ https://www.digitalmusicnews.com/2024/05/20/otis-redding-sony-music-publishing-admin-deal/ Mon, 20 May 2024 23:47:18 +0000 https://www.digitalmusicnews.com/?p=291481 otis redding

The family of Otis Redding Jr. and Sony Music Publishing execs, including, furthest to the right, CEO Jon Platt. Photo Credit: SMP

Sony Music Publishing (SMP) has officially finalized an administration pact with the estate of Otis Redding Jr.

The Sony Music-owned publisher and the heirs of Redding, doing business specifically as Big O Holdings LLC, reached out today with word of the admin deal. Six decades have passed since the “King of Soul” Redding released his debut album, Pain in My Heart, on which he penned tracks including “These Arms of Mine.”

Dawson, Georgia-born Redding also wrote commercially prominent works such as “Ole Man Trouble” and “Respect,” to name just a couple. Both those tracks released on the Rock and Roll Hall of Fame inductee’s third album, Otis Blue, and “Respect” was, of course, later recorded with immense success by Aretha Franklin.

Following Redding’s 1967 passing in a plane crash at only 26 years old, a number of posthumous albums, including 1968’s The Dock of the Bay, released bearing his name. The latter project’s first track, “(Sittin’ On) The Dock of the Bay,” remains one of the Songwriters Hall of Famer’s most well-known songs.

Addressing the decision to partner with Sony Music Publishing, Zelma Redding said: “For over 50 years I have been diligent to make sure Otis’ legacy remains relevant and recognizable around the world. I feel that the Sony Music Publishing team can assist my family in this never-ending effort.”

And in comments of his own, SMP president and global chief marketing officer Brian Monaco emphasized the career accomplishments of Redding “as one of the most iconic songwriters in American history.” SMP CEO Jon Platt, for his part, acknowledged Redding’s musical and cultural impact.

“As one of the most significant songwriters of our lifetime, Otis Redding remains an American treasure,” said Platt. “Otis’ songs have shaped the cultural landscape across genres and generations, and it is a privilege to partner with the Redding family as stateside custodians of this singular music catalog.”

Having debuted a MENA division in February, Sony Music Publishing last month signed (via its Nashville unit) Randall King to a global deal. More recently, May has seen the publisher, the catalog of which encompasses some 6.24 million works, purchase the song rights of Tame Impala’s Kevin Parker and make clear its opposition to Spotify’s embrace of bundling.

As multiple organizations – among them the Mechanical Licensing Collective, which is suing Spotify – have noted, that pivot is poised to bring about a multimillion-dollar decline in stateside mechanicals. Nevertheless, time will reveal the bigger-picture commercial effects of bundling.

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Spotify Immediately Responds to the MLC’s Lawsuit — And They’re Not Backing Down https://www.digitalmusicnews.com/2024/05/17/spotify-mlc-response-lawsuit-royalties/ Sat, 18 May 2024 04:53:04 +0000 https://www.digitalmusicnews.com/?p=291255 Books & Music: So simple, yet so complicated (photo: Andrea Piacquadio)

Books & Music: So simple, yet so complicated (photo: Andrea Piacquadio)

Late yesterday, Digital Music News first reported on the Mechanical Licensing Collective’s lawsuit against Spotify over allegedly underpaid publishing royalties. Now, Spotify is pushing back and seriously questioning the merits of the MLC’s claims. Here’s what they relayed to DMN early this morning.

Spotify is now responding to an aggressive lawsuit filed by the Mechanical Licensing Collective (MLC), and it looks like we may have a fight on our hands. Late yesterday, the MLC filed its complaint against Spotify USA in the United States District Court for the Southern District of New York (here’s the complete 23-page filing). In summary, the MLC alleges that the streaming music platform is illegally undercutting its royalty obligations by bundling its various music, audiobook, and podcast offerings.

Not so fast, Spotify says. In comments issued to Digital Music News this morning, the DSP asserts that everything is above board, fair and square, and by the book. Specifically, Spotify notes that bundling discounts were baked into the most recent royalty agreement approved by the Copyright Royalty Board — dubbed ‘Phonorecords IV’ — and publishers are refusing to follow their own terms.

“The [MLC] lawsuit concerns terms that publishers and streaming services agreed to and celebrated years ago under the Phono IV agreement,” Spotify told DMN, while linking to a ‘celebratory’ announcement issued at the time by the National Music Publishers’ Assocation (NMPA).

Everyone signed off on Phonorecords IV and popped the champagne afterward, Spotify says, with bundling terms clearly agreed upon. “Bundles were a critical component of that settlement, and multiple DSPs include bundles as part of their mix of subscription offerings,” the streaming platform continued.

It’s worth noting that other streaming music platforms also bundle, with Apple and Amazon both masters of high-priced bundled offerings that span media, e-commerce, and other perks. Exactly how those platforms employ bundling to their advantage on the royalty front is unclear at this stage, though more details could surface if a court battle ensues.

Further flexing its clout — and this could come into play later — Spotify also pointed to its massive royalty contributions to the music industry overall.

“Spotify paid a record amount to publishers and societies in 2023 and is on track to pay out an even larger amount in 2024,” the Spotify executive continued.

That comment was carefully calculated and part of an interesting power dynamic between the platform, the music industry, and music publishers. So far, the recording side of the business has been quiet on the bundling royalty question, with major label toppers like Lucian Grainge (UMG) and Robert Kyncl (WMG) mostly praising Spotify’s bundling strategies. Part of the reason is that Spotify is more intelligently pushing price increases by diversifying its product mix, a strategy likely to spill even more revenues into major label coffers.

DMN Pro Weekly Report: As Spotify Embraces Bundles, Mechanical Royalties Take a Hit — But Are We Missing the Big Picture Here?

Despite lingering fears of a streaming subscription plateau, major labels are still posting double-digit quarterly revenue gains, with paid subscriptions a big reason for the uptick. That might explain why publishers are fighting this battle alone, even though major publishers are often subsidiaries of major label conglomerates.

Back to the MLC situation, Spotify hesitated to spell out its next moves.

That could include a combative legal response, though some negotiations may be in order first. “We look forward to a swift resolution of this matter,” the company offered.

As for the allegations, the MLC alleges that Spotify has sneakily classified its Premium Individual, Duo, and Family plans as bundled subscriptions by including audiobook access. This classification allegedly reduces the reported service provider revenue for music, leading to lower royalty payments.

The MLC argues that Spotify’s bundling approach does not comply with applicable laws and regulations—though Spotify begs to differ on that point. The lawsuit seeks corrected reporting and unpaid royalties from March 2024 onwards, along with future compliance.

The MLC, created by unanimous Congressional mandate in 2018 and designated by the Register of Copyrights, is tasked with collecting and distributing blanket mechanical license royalties and enforcing payment obligations. Since its inception in January 2021, the MLC says it has distributed over $2 billion to songwriters and music publishers.

More as this develops.

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Sony Music Publishing ‘Considering All Options’ Against Spotify Following MLC Litigation, NMPA Warnings https://www.digitalmusicnews.com/2024/05/17/sony-music-publishing-spotify-dispute/ Fri, 17 May 2024 23:15:36 +0000 https://www.digitalmusicnews.com/?p=291295

Music publishing heavyweight Sony Music Publishing is now threatening action against Spotify over its less-than-welcomed royalty reductions.

Spotify has just poked another giant bear following its transition to bundled subscription packages—and the conveniently lower publishing royalty payouts that come with them. According to internal communications leaked to Digital Music News early Friday (May 17th), Sony Music Publishing chief Jon Platt isn’t in a rosy mood following Spotify’s maneuvers and may take action.

As if a lawsuit from the Mechanical Licensing Collective (MLC) and a cease-and-desist from the National Music Publishers’ Association isn’t enough, Platt is now promising to put all options on the table.

Platt succinctly outlined the issue and possible next steps in a letter sent to member songwriters and composers earlier today. “We are working with the National Music Publishers’ Association (NMPA) and considering all options to enforce the improved rates that were achieved in CRB Phono IV,” Platt relayed.

“In addition, earlier this week, the NMPA sent a letter to Spotify putting them on notice that there are unlicensed videos, lyrics, and podcasts on its service, an important step to ensure that songwriters are being paid properly across all aspects of Spotify’s platform.”

Earlier this morning, Spotify told DMN that it strongly disagrees with the MLC lawsuit. The platform pointed to its recently signed ‘Phonorecords IV’ agreement governing mechanical publishing payouts, which includes stipulations related to bundling.

“The [MLC] lawsuit concerns terms that publishers and streaming services agreed to and celebrated years ago under the Phono IV agreement,” Spotify emailed DMN while linking to a ‘celebratory’ announcement issued at the time by the National Music Publishers’ Association (NMPA).

Platt and Sony Music Publishing see matters differently. “We do not agree with Spotify’s position,” Platt noted. “While the CRB rate structure allows for a discounted bundle rate in certain circumstances, we do not believe this offering falls within the parameters that were agreed in the last CRB proceeding.”

Separately, music industry chatter is now focused on whether a ‘nuclear option’ could be next.

But unlike Lucian Grainge’s gutsy TikTok pullout, music publishers may be unable to pull their content unilaterally. For starters, Spotify and the Mechanical Licensing Collective (MLC) are now locked in a legal battle, with a court adjudicating whether laws and contacts are being broken. It’s quite feasible that Spotify prevails, which means that publishers won’t have the ability to remove content under statutory and compulsory licensing rules.

Beyond mechanical royalties, however, there’s also the matter of music inclusion within podcasts and videos. The NMPA has put Spotify on notice for its use of music within podcasts as well as its placement of lyrics within videos. Those fall outside of statutory law and require direct handshakes and authorizations to prevent direct infringement.

Here’s the full letter sent by Platt just hours ago.

Dear Songwriters and Composers,

I’m writing to share an important update regarding the mechanical royalties that Spotify pays you in the United States. 

Until recently, Spotify has been paying songwriters at the improved headline rate that was agreed upon in the last U.S. Copyright Royalty Board (CRB Phono IV) proceeding in 2022.

Late last year, Spotify added an audiobook offering to its premium subscription tier in the U.S. and across several other markets.  Spotify then unilaterally reclassified their subscription product as a bundle.  They claim this enables them to pay a reduced mechanical royalty rate. In effect, Spotify is taking the position that all U.S. subscribers are part of a bundle without choosing the bundle option.
 
Beginning with their March 2024 accountings, Spotify began to pay at the discounted rate that they claim they are entitled. This has the effect of reducing mechanical royalty payments to songwriters by approximately 20%. The reduction does not currently impact royalties outside of the U.S.

We do not agree with Spotify’s position.  While the CRB rate structure allows for a discounted bundle rate in certain circumstances, we do not believe this offering falls within the parameters that were agreed in the last CRB proceeding.

Yesterday, the Mechanical Licensing Collective (MLC) filed a lawsuit in Federal Court in New York City challenging Spotify’s actions.

We are working with the National Music Publishers’ Association (NMPA) and considering all options to enforce the improved rates that were achieved in CRB Phono IV. In addition, earlier this week the NMPA sent a letter to Spotify putting them on notice that there are unlicensed videos, lyrics and podcasts on its service, an important step to ensure that songwriters are being paid properly across all aspects of Spotify’s platform.

I will continue to reach out directly with important updates as they come.

Jon Platt

Chairman & CEO, Sony Music Publishing

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Moments After the NMPA Issues a Cease-and-Desist Against Spotify Over Lyrics, Podcasts, and Music Videos, Spotify Calls It ‘A Press Stunt Filled With False and Misleading Claims’ https://www.digitalmusicnews.com/2024/05/15/spotify-music-publishers-dispute/ Thu, 16 May 2024 06:30:13 +0000 https://www.digitalmusicnews.com/?p=291045 TikTok NMPA license not renewing

Photo Credit: NMPA

Spotify is seriously pissing off music publishers – and not just with the mechanical-royalties decrease stemming from its newfound emphasis on bundling. But moments after the NMPA issued a cease-and-desist against the streaming platform over lyrics, podcasts, and music videos, Spotify called the move ‘a press stunt with false and misleading claims.’

The National Music Publishers’ Association (NMPA) first spoke out against Spotify’s audiobook-bundle reclassification last month, when CEO David Israelite publicly criticized the “cynical, and potentially unlawful, move.” In short, the pivot will see the platform pay a lower mechanical rate on the involved plans’ revenue – thereby reducing the appropriate royalties by as much as $150 million annually, per some estimates.

While that side of the intensifying dispute doesn’t seem any closer to resolving amicably, the confrontation is now spilling over into other areas. (Spotify has refuted the criticism with multiple statements as well as remarks delivered during its Q1 earnings call.)

Specifically, the NMPA is calling out the alleged “copyright infringement of our members’ musical works” when it comes to displayed lyrics, music videos, and more, according to a cease-and-desist letter sent to Spotify yesterday and shared with DMN.

After reiterating the basics of the “antiquated” compulsory license and the consent decrees governing ASCAP and BMI public performance licenses, the message, penned by NMPA EVP and general counsel Danielle Aguirre, zeroes in on the direct negotiations that must nevertheless precede “the use of lyrics and music in videos and podcasts.”

It has come to the NMPA’s attention, the firmly worded letter proceeds, “that Spotify displays lyrics and reproduces and distributes music videos and podcasts using musical works without the consent of or compensation to the respective publishers and administrators” in control of the copyrights at hand.

“As such, these uses of musical works on the Spotify platform are not licensed or will soon become unlicensed,” the to-the-point cease-and-desist reads in part.

Following that idea to its logical conclusion, “Spotify appears to be engaged in direct infringement by hosting unlicensed musical works in its lyrics, videos, and podcasts and by distributing unauthorized reproductions, synchronizations, displays, and derivative uses to its users,” the text spells out.

Reiterating for good measure that “Spotify profits from such infringement,” the letter calls on the growth-minded platform to remove the allegedly infringing lyrics, music videos, and podcasts or “face copyright liability.”

Not stopping there, the NMPA’s letter closer to its end shifts the focus to Spotify’s rumored “remix” feature, through which subscribers will be able to modify certain tracks “to create derivative works.”

“Spotify is on notice that releasing any such feature without the proper licenses in place from our members may constitute additional direct infringement,” the message states.

Given the timing of this formal notice – immediately following the start of the bundling dust-up – it can safely be said that Spotify has poked the publishing bear. One needn’t stretch the imagination to see how the corresponding dispute could ultimately have a far-reaching effect throughout the industry.

On that front, the Recording Academy’s Songwriters and Composers Wing has already offered a statement on the matter, saying it’s “disappointed” with Spotify’s alleged focus “on cutting costs at the expense of songwriters.”

“Songwriters provide the foundation of the music we love,” the appropriate Recording Academy wing communicated, “and they should always be paid fairly. The CRB settlement reached in 2022 marked a welcome step forward in cooperation between digital platforms and publishers.

“We are disappointed that Spotify appears to be focused on cutting costs at the expense of songwriters instead of continuing in that spirit of cooperation. The Recording Academy Songwriters + Composers Wing continues to stand with songwriters, and we will work to ensure they are fully valued and appropriately compensated for the work they do that enriches our lives,” the Grammys organizer finished.

Shortly after this piece was published, a Spotify spokesperson provided a statement (complete with the included hyperlinks) to DMN, criticizing the NMPA’s assessment and reiterating that the organization had agreed to and publicly touted 2022’s Phonorecords IV settlement.

It’s under the terms of that pact, which features bundle-classification adjustments and runs through 2027, that Spotify has moved to pay a lower mechanical rate on its joint music and audiobook plans. However, a music-only plan (subject to the original, higher rate) is also on the way, the service previously signaled.

“This letter is a press stunt filled with false and misleading claims,” the Spotify rep said. “It’s an attempt to deflect from the Phono IV deal that the NMPA agreed to and celebrated back in 2022. We paid a record amount to benefit songwriters in 2023, and we are on track to exceed this amount in 2024. Spotify is a platform for licensed content. We are committed to the integrity of our platform, and we have a clear process in place for rightsholders to contact Spotify about any content they believe is unlicensed.”

More as this develops.

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As Spotify Embraces Bundles, Mechanical Royalties Take a Hit — But Are We Missing the Big Picture Here? https://www.digitalmusicnews.com/pro/nmpa-v-spotify-bundle-big-picture/ Thu, 16 May 2024 02:45:22 +0000 https://www.digitalmusicnews.com/?post_type=dmn_pro&p=291032 Spotify touts music, podcasts, audiobook bundles

Photo Credit: Spotify

Make no mistake, music publishers aren’t thrilled about Spotify’s big shift towards bundled offerings.

NMPA head David Israelite has condemned in no uncertain terms Spotify’s “perversion of the settlement” behind Phonorecords IV, making clear as well that “all options” are on the table when it comes to pushing back against the “potentially unlawful” change. And the Association of Independent Music Publishers (AIMP) has likewise decried the “deeply cynical move.”

Others are far less concerned. Book publishers are for obvious reasons thrilled about Spotify’s overarching audiobook buildout, which has reportedly paid them “tens of millions” of dollars already. And notwithstanding the pessimistic assessment from the NMPA, key music industry stakeholders – referring here to UMG CEO Lucian Grainge and WMG CEO Robert Kyncl – have had largely positive things to say about the change.

All of which raises the question: is this really bad news for the music industry?

Report Table of Contents

Introduction: The Estimated Mechanical Royalties Impact of Spotify’s Audiobook Bundles

Smaller Payments for Music Publishers? A Look At Spotify’s Audiobook Bundles and the Involved Mechanical Rate

What Mechanical Royalties Falloff? The Major Labels’ Curiously Optimistic Responses to Spotify’s Bundling Classification

Spotify’s Audiobook Pivot and the Evolving Entertainment Landscape: Possible Positives from the Embrace of Bundles

The Bottom Line: What’s the Net Impact of Spotify’s Audiobook Bundles?

 

Please note: redistribution of this report is not permitted. Thank you.


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Sony Music Publishing Acquires ‘Complete’ Catalog of Tame Impala’s Kevin Parker https://www.digitalmusicnews.com/2024/05/15/sony-music-publishing-kevin-parker-deal/ Thu, 16 May 2024 01:45:14 +0000 https://www.digitalmusicnews.com/?p=291009 sony music publishing kevin parker deal

Sony Music Publishing Australia MD Damian Trotter (left) and Kevin Parker. Photo Credit: SMP

Another day, another song-rights deal: Sony Music Publishing (SMP) has acquired the “complete” catalog of Kevin Parker, who’s released four studio albums as Tame Impala.

SMP today announced the purchase agreement with Sydney-born Parker, who’s worked with the publisher since 2009. While the investing party opted against disclosing the transaction’s precise financials, it did emphasize that Parker’s “achievements go far beyond Tame Impala.”

Those varied career feats include songwriting credits on tracks recorded by Rihanna, Travis Scott, Mick Jagger, Kendrick Lamar, SZA, Lady Gaga, and Kid Cudi, to name just some. Additionally, the 38-year-old penned and produced several songs (among them “Houdini” and “Illusion”) on Dua Lipa’s latest album.

Addressing the decision to cash in on his IP, Parker made clear the “love and trust” he has for SMP, the owned-and-administered catalog of which encompassed a staggering 6.24 million works as of March 31st, 2024.

“The idea of passing on ownership of my songs is one that I don’t think about very lightly, at all,” communicated Parker. “They are the fruit of my blood, sweat and creativity over all the years I’ve been a recording artist and songwriter so far.

“I have a lot of love and trust for the Sony publishing family and have only had great experiences with [SMP Australia MD] Damian Trotter and the rest of the gang worldwide,” the three-time Grammy nominee proceeded. “I don’t think my songs could be in any safer hands than Sony’s, and I’m excited for the future and happy I can keep working with them on whatever the future brings…”

Earlier this week, Sony Music proper, capitalizing on a more than decade-long partnership, acquired the entire catalog of French label Wati-B. Bigger picture, 2024 has to this point delivered a number of legacy-act catalog sales, including Sony Music’s deal with the Michael Jackson estate, Pophouse’s pacts with KISS and Cyndi Lauper, and Iconic’s tie-up with Rod Stewart.

But Parker is hardly the only young professional who’s opted to sell; Litmus Music bought Katy Perry’s catalog in September of 2023 and, following something of a slowdown in this department, Anthem Entertainment kicked off 2024 with a transaction involving Beth and Luke Laird’s Creative Nation.

More broadly, the long list of non-legacy catalog sales delivered in 2023, all compiled by DMN Pro’s comprehensive Music IP Acquisition Tracker, includes but isn’t limited to Wiz Khalifa (age 36), Blackbear (33), Logic (34), Benny Blanco (36), Metro Boomin (30), Tobias Jesso Jr. (38), and Justin Bieber (30).

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Downtown Launches Royalties and Financial Services Division, Sets Sights on ‘Ensuring Every Stream Is Accounted For’ https://www.digitalmusicnews.com/2024/05/14/downtown-music-royalties-financial-services-division/ Tue, 14 May 2024 17:25:46 +0000 https://www.digitalmusicnews.com/?p=290913 downtown music

Curve founder Tom Allen, who’s become president of Downtown Royalties and Financial Services. Photo Credit: Downtown

Less than one week removed from its announcement of a $500 million Bank of America credit facility, Downtown Music has launched a royalties and financial-services division.

The Curve Royalty Systems owner Downtown reached out with word of its just-minted unit today, after naming Pieter van Rijn CEO in April. According to the New York City-based company, Curve’s platform is set to power the new division’s royalty processing, with accounting services and payments also part of the operation.

Leading that operation is Curve founder Tom Allen, who’s specifically been tapped to serve as president of Downtown Royalties and Financial Services. Meanwhile, Curve general manager Richard Leach has been elevated to managing director, a bolstered position that will see him “oversee the day-to-day management” of Curve. Leach will report to Allen, who will himself report to Downtown chief business officer David Driessen.

“Downtown Royalties and Financial Services is both a commitment to the expansion of our core offering into deeper services and solving payment problems to our customers,” Driessen said, “and to simplifying the financial complexities that artists and businesses across the industry face daily.

“Tom’s leadership at Curve has already elevated the industry standard for royalty management and financial services. His expertise will be crucial as he guides this new division at Downtown,” proceeded the former FUGA higher-up.

Elaborating on the motivation behind the buildout, Downtown emphasized the north of 1,000 labels and publishers, among them Domino, Epitaph, Armada, and Big Machine, that Curve (and now Downtown Royalties and Financial Services) already counts as clients.

Downtown proper boasts in excess of “5,000 business clients and 4 million artist relations,” according to the Spirit Music-partnered business.

“In 2023 alone,” Allen added, “Curve clients generated hundreds of billions of streams across major streaming platforms. We’re committed to expanding our full services offering to report and pay their earnings efficiently, ensuring every stream is accounted for.

“Downtown Royalties and Financial Services is the next phase of our vision, with our services and payments divisions, and even though I will continue to oversee Curve, it feels great to be able to leave the day-to-day management and growth of the platform in Richard’s hands,” finished the Metable founder.

Regarding the goal of “ensuring every stream is accounted for,” against the backdrop of a rapid play-volume expansion, data recently revealed that 16 percent of DSP streaming statements are “suspicious” – a descriptor that refers to more than fraud. Last month, we took a detailed look at how leading platforms stack up when it comes to accurate reporting and payments.

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Indie Music Publishers Step Up the Pressure Against Spotify: AIMP Says Bundling Shenanigans Will Cut Mechanical Royalties an Estimated $150 Million https://www.digitalmusicnews.com/2024/05/13/aimp-statement-spotify-bundling/ Tue, 14 May 2024 06:00:28 +0000 https://www.digitalmusicnews.com/?p=290760 AIMP statement on Spotify bundling cutting publisher royalties

Photo Credit: Adam Nir

Spotify’s recent bundling of audiobooks with its music offering is changing how it pays songwriters and publishers. With an estimated $150 million in lost revenue, the music publishing industry isn’t thrilled with the upcoming changes.

The addition of the audiobook feature to its existing Spotify Premium offering allows the platform to claim a new bundled disbursement rate — and that’s rankling music publishers large and small. The new Spotify Premium rate values audiobooks at $9.99 and the Premium bundle at $10.99. After doing the math, that means Spotify only values music at 52% of the total bundle value—just $5.70 per Spotify Premium subscriber.

The resulting reductions for publishers has already been raised by NMPA chief David Israelite, though now there are numbers being placed on the possible damage: Billboard’s Kristin Robinson estimates a loss of $150 million in mechanical royalties for songwriters and publishers due to this change.

Now, industry bodies like the Association of Independent Music Publishers (AIMP), alongside the aforementioned National Music Publishers Association (NMPA), are speaking out about the changes.

“It appears Spotify has returned to attacking the very songwriters who make its business possible, NMPA President & CEO David Israelite said after Spotify introduced its new bundled tiers. “Spotify’s attempt to radically reduce songwriter payments by reclassifying their music service as an audiobook bundle is a cynical—and potentially unlawful—move that ends our period of relative peace. We will not stand for their perversion of the settlement we agreed upon in 2022.”

An AIMP statement jointly signed by Michael Lau (National Chair & NY Chapter President), Marc Caruso (Los Angeles Chapter President), Ree Guyer (Nashville Chapter President), and Tony D. Alexander (Atlanta Chapter President) highlights the issue even further.

“It is a deeply cynical move for Spotify to attempt to circumvent the CRB settlement agreed to by the NMPA & NSAI and DiMA in 2022 via this bundling ‘loophole’ and further insulting that the price of a Spotify subscription will actually increase for users while cutting revenue for the songwriters who keep their business alive,” the statement addressing the $150 million figure begins.

“This is especially problematic for independent music publishers, as they and all publishers are legally prevented from negotiating protections against bad-faith tactics such as this, while labels are allowed to do so in a free market.”

“At this point, we still do not know how Spotify plans to notify its subscribers of this change. The right thing to do is to default existing subscribers to music-only accounts, and then give them the option to add-on the audiobook service for an additional $9.99 per month—Spotify’s proposed standalone rate for audiobooks.”

“This ensures a proper, non-devalued royalty rate for both music and audiobook publishers and rightsholders, who will otherwise both be negatively affected by the bundling. The AIMP offers its unequivocal support to the NMPA as they fight this critical battle to prevent Spotify’s scheme from taking effect.”

“We encourage all independent music publishers to join us in this stance and make their songwriters aware of this attack on their livelihood. We cannot allow bundling to become a precedent that can be used to deprive songwriters of their well-earned royalties.”

More as this develops.

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Concord Isn’t Upping Its Hipgnosis Offer; Says $1.25-Per-Share Bid Is ‘Final and Will Not Be Increased’ https://www.digitalmusicnews.com/2024/05/08/concord-hipgnosis-offer-final/ Thu, 09 May 2024 05:45:25 +0000 https://www.digitalmusicnews.com/?p=290490 Hipgnosis Songs Fund slashes valuation

Photo Credit: Hipgnosis Songs Fund

Apollo-backed Concord says it will not be increasing its Hipgnosis bid higher than $1.25 per share, a statement that gives Blackstone the higher offer and a path towards acquisition.

Concord will not be upping its offer for Hipgnosis Songs Fund (HSF), according a statement issued to Digital Music News late Wednesday (May 8th). In an emerging bidding war involving Blackstone, Concord had recently upped its offer to $1.25 per share, with Blackstone quickly beating the per-share price. Concord’s $1.25-per-share price, however, is’ final and will not be increased,’ according to the company and its operative acquisition entity, Concord Bidco.

“Further to the announcements made by Concord Bidco on 18 April 2024 and 24 April 2024 (the “Announcements”) setting out the terms of its all cash offer for the entire issued, and to be issued, share capital of Hipgnosis, Concord Bidco confirms that its offer of $1.25 per Hipgnosis Share is final and will not be increased,” the statement reads.

Late last month, after Concord put up an improved offer of $1.51 billion for Hipgnosis Songs Fund – and began purchasing shares from investors – Blackstone shot back with a $1.57 billion bid.

Blackstone, which is the majority owner of Hipgnosis Song Management, and HSF formally announced the higher bid on April 28th. Made via Blackstone’s newly formed “Lyra Bidco,” the proposal would pay the publicly traded songs fund’s investors $1.30 per share and was recommended by Hipgnosis Songs Fund to its shareholders.

Blackstone would also assume HSF’s sizable debt facility as part of their offer.

“The Board is pleased to unanimously recommend this US$1.6 billion Offer for Hipgnosis from Blackstone,” HSF chair Robert Naylor said in a statement late last month. “Since we started our strategic review, we have been clearly focused on looking at all the options to deliver shareholder value. We are delighted that, following competitive interests in acquiring Hipgnosis, our investors now have a chance to immediately realise their holding at an increased premium.”

Leading up to Concord’s latest announcement, multiple Hipgnosis shareholders have started to divest their shares.

That strongly suggested that the bidding war was coming to a close, though a purchase isn’t a clear next step. As part of a complex ownership arrangement, Hipgnosis Songs Management, or HSM, Hipgnosis Songs Fund’s investment advisor, appears resolutely ready to protect its position amidst the bidding war.

A key issue is a “call option” in the investment advisory agreement between HSM and HSF. This option would allow HSM to acquire HSF’s assets in specific scenarios, potentially hindering a sale to a third party.

As of very early Thursday, May 9th, HSF had not issued a statement on Concord’s decision to stay put.

More as this develops.

 

 

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Rejoice! Universal Music Group Artists Return to TikTok as New Licensing Agreement Emerges https://www.digitalmusicnews.com/2024/05/02/universal-music-group-tiktok-agreement/ Thu, 02 May 2024 13:27:14 +0000 https://www.digitalmusicnews.com/?p=289828 tiktok ban

Photo Credit: BoliviaInteligente

In a sudden turn of events, Universal Music Group and TikTok have announced a new licensing agreement, signifying a hopeful step forward in the fraught relationship between the music industry giant and the global social media platform. The development closely follows the passage of the ‘TikTok ban bill’ in the United States.

The agreement, announced early this morning from Los Angeles, marks the end of a contentious period while potentially setting the stage for a deal benefiting artists, songwriters, labels, and the billion-plus user community of TikTok. Terms of the updated agreement were not disclosed, though UMG executives had cited problems with overall compensation and AI licensing.

The UMG-TikTok deal comes after a months-long standoff, which also included threats of legal action from UMG against TikTok for alleged DMCA violations, as Digital Music News first reported last month. UMG first began removing its entire catalog from the platform at the end of February, causing howls of protests from TikTokers and artists alike.

Also worth noting: TikTok’s agreement comes just days after President Biden signed into a law that would effectively ban the platform in the United States. TikTok and its parent, ByteDance, have vowed to challenge the law in court, though the serious development may have prompted TikTok to play nicer with the music industry.

Separately, sources to DMN pointed to tens of thousands of DMCA takedown notices being issued by UMG, part of a larger, systemic issue of unauthorized content proliferating on the platform. Those concerns may have been alleviated by the terms of the freshly-inked deal, though more details are undoubtedly forthcoming.

For now, there’s a new era of cooperation between the companies, with UMG artists back on the platform.

Sir Lucian Grainge, Chairman and CEO of Universal Music Group, expressed enthusiasm about the renewed partnership, emphasizing the value of music, the importance of human artistry, and the welfare of the creative community. Grainge highlighted the potential for collaborative innovation in fan engagement and the advancement of social music monetization, promising a brighter future for UMG’s artists and songwriters.

“This new chapter in our relationship with TikTok focuses on the value of music, the primacy of human artistry and the welfare of the creative community,” Grainge stated. “We look forward to collaborating with the team at TikTok to further the interests of our artists and songwriters and drive innovation in fan engagement while advancing social music monetization.”

Shou Chew, CEO of TikTok, echoed these sentiments, reaffirming the platform’s commitment to driving value, discovery, and promotion for UMG’s roster of artists and songwriters. Chew emphasized the integral role of music in the TikTok ecosystem and the company’s dedication to deepening the ability of artists to grow, connect, and engage with the community.

“Music is an integral part of the TikTok ecosystem and we are pleased to have found a path forward with Universal Music Group,” Chew said. “We are committed to working together to drive value, discovery and promotion for all of UMG’s amazing artists and songwriters, and deepen their ability to grow, connect and engage with the TikTok community.”

The agreement promises including improved remuneration for UMG’s songwriters and artists, new promotional and engagement opportunities, and protections regarding the use of generative AI in music creation.

That includes artist-centric tools like “Add to Music App,” which TikTok expanded during the standoff. That helps to shuttle fans towards DSPs like Spotify when songs or artists are trending. But more importantly for TikTok, the UMG deal reopens a critical license for TikTok Music, a new-fangled Spotify competitor that is still in its infancy.

Additionally, DMN understands that UMG will be given enhanced data and analytics on artist activity. Separately, TikTok has also been busy integrating ticketing capabilities, part of a continued expansion into music that could further benefit UMG-inked artists.

Both organizations have also pledged to work together on ensuring AI development in the music industry respects human artistry and contributes positively to the economics that flow to artists and songwriters. Efforts will be made to remove unauthorized AI-generated music from TikTok, alongside introducing measures to improve artist and songwriter attribution.

Ole Obermann, TikTok’s Global Head of Music Business Development, and Michael Nash, Chief Digital Officer and EVP of Universal Music Group, both expressed optimism about the potential of this partnership to foster deeper connections between artists, creators, and fans, and to promote an environment in which artists and songwriters prosper.

“We are delighted to welcome UMG and UMPG back to TikTok,” Obermann said. “We look forward to working together to forge a path that creates deeper connections between artists, creators, and fans. In particular, we will work together to make sure that AI tools are developed responsibly to enable a new era of musical creativity and fan engagement while protecting human creativity.”

“Developing transformational partnerships with important innovators is critical to UMG’s commitment to promoting an environment in which artists and songwriters prosper,” Nash relayed.

“We’re gratified to renew our relationship with TikTok predicated on significant advancements in commercial and marketing opportunities as well as protections provided to our industry-leading roster on their platform. With the constantly evolving ways that social interaction, fan engagement, music discovery and artistic ingenuity converge on TikTok, we see great potential in our collaboration going forward.”

More as this develops.

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More Than Half of 13-34 Year-Olds Still Listen to Radio Every Single Day In the US — But Can This Format Survive the Next 10 Years? https://www.digitalmusicnews.com/pro/weekly-radio-2024/ Thu, 02 May 2024 02:50:13 +0000 https://www.digitalmusicnews.com/?post_type=dmn_pro&p=289711 The Young Americans are listening: Edison's 'Share-of-Ear' data for Q2 2023–Q1 2024

The Young Americans are listening: Edison’s ‘Share-of-Ear’ data for Q2 2023–Q1 2024

The data is both encouraging or depressing — and the landscape is more complicated than ever. But where does radio stand in 2024, given a quick-evolving streaming landscape and an increasingly digital music space? Six experts tackled the complex question and discussed the medium’s path forward during our latest DMN Pro event. Here are some of the takeaways.

If radio is dead, listeners haven’t quite noticed. Nielsen, in its Radio Today report, pointed out that AM/FM reaches 91% of American adults each month. Edison Research found in its Share of Ear survey that radio reaches 53% of Americans between the ages of 13 and 34 on a daily basis, with 56% of that group listening only in the car.

But how engaged are all those listeners — and how are they listening? More importantly, where will this space find itself in five or ten years, especially considering the breakneck gains in on-demand streaming and rapid in-car dashboard upgrades?

In this DMN Pro Weekly Report, we take a closer look at the data while interviewing leading experts in the space. Everyone — from will.i.am to SoundExchange CEO Michael Huppe — had unexpected insights into this space. And nobody was willing to write this format off.

Report Table of Contents

I. Where Radio Stands in 2024: The Surprising Stats

      • Graph: Young Adult Listeners and Terrestrial Radio In the U.S.
      • Graph: Median Age by Platform

II. What’s Right With This Format: A Look at Radio’s Competitive Strengths

III. How Exactly Is Radio Coming Up Short in 2024? A Look At the Medium’s Missed Opportunities

IV. The Bottom Line: How Can Radio Evolve to Remain Popular and Reestablish Its Relevance?

Please note: redistribution of this report is prohibited.


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Warner Chappell & BandLab Technologies Ink Partnership Deal, Aim to ‘Amplify the Voices of Promising, Up-and-Coming Talent’ https://www.digitalmusicnews.com/2024/04/26/warner-chappell-bandlab-technologies-partnership-deal/ Sat, 27 Apr 2024 00:03:00 +0000 https://www.digitalmusicnews.com/?p=288681 warner chappell bandlab technologies deal

Warner Chappell and BandLab Technologies have inked an exclusive partnership agreement. Photo Credit: Warner Music Group

Warner Chappell Music (WCM) and BandLab Technologies have inked an exclusive agreement centering on the latter’s ReverbNation artist-services subsidiary.

The Warner Music-owned publisher and Caldecott Music Group’s BandLab Technologies reached out today with word of their “groundbreaking” union. As described by the companies, Warner Chappell is set to handle administration for ReverbNation creators enrolled in a “new ReverbNation Publishing Administration program.”

Additionally, WCM and ReverbNation intend to form a JV designed to identify and connect with talent via the platform, which BandLab Technologies bought back in 2021. Songwriters “jointly signed” to the publisher as well as ReverbNation will also receive support from the former’s team, including A&R, sync, and creative-services professionals, the entities drove home.

Addressing the partnership, Warner Chappell co-chair and CEO Guy Moot noted the “multitude of different digital platforms” through which artists and songwriters are currently being discovered.

“Songwriters and artists are now being discovered through a multitude of different digital platforms, in what I call the ‘new songwriter economy,’” said Moot, whose employer (Warner Music proper, that is) unveiled an expansive deal with SoundCloud nearly two years back.

“Joining forces with BandLab Technologies allows us to tap into the incredible creator community that they’ve built and help support and amplify the voices of promising, up-and-coming talent,” he continued.

And in comments of his own, BandLab Technologies co-founder and CEO Meng Ru Kuok, who also heads NME Networks and the aforementioned Caldecott, emphasized the perceived ability to enable “a new generation of artists to find their voice and place.”

“This partnership not only unlocks additional potential avenues for artistic development and innovation, it also bridges the gap between emerging talents and established industry platforms, allowing a new generation of artists to find their voice and place in a continuously adapting and expanding landscape,” the Gawker owner said in part.

Bigger picture, the agreement marks just the latest in a line of high-profile deals closed by Warner Chappell, which recently brought on a new VP of creative sync, to this point in 2024. Specifically during April, the publisher finalized a global admin tie-up with Dua Lipa’s Radical22 and, on the gaming side, united with Electronic Arts.

Lastly, in terms of WCM’s April moves, the publisher and ICE broadened their partnership 10 days ago. Under that bolstered pact, Warner Chappell is expected to “move all online processing from other European digital licensing administration partners to ICE.”

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Hipgnosis Bidding War Heats Up! Concord Ups Its Offer Against Blackstone to $1.51 Billion https://www.digitalmusicnews.com/2024/04/24/hipgnosis-concord-bidding-war-increase/ Wed, 24 Apr 2024 18:41:20 +0000 https://www.digitalmusicnews.com/?p=288038 Hipgnosis Songs Fund slashes valuation

Photo Credit: Hipgnosis Songs Fund

Let the bidding war commence! After getting one-upped by Blackstone, Concord is now back with a slightly better all-cash bid of $1.51 billion.

Over the weekend, Blackstone bested Concord Chorus’ $1.4 billion all-cash offer for Hipgnosis Songs Fund Limited with a juicier $1.5 billion offer. Now, Concord is quickly responding with a slightly-better, $1.51 billion offer.

The offer, emailed to Digital Music News moments ago, outlined a revised cash offer of $1.25 per share, a 7.8% increase from its original offer. The offer values Hipgnosis at approximately $1.5115 billion, which edges out Blackstone’s weekend offer.

In its offer summary, Concord noted that the revised offer represents a significant premium over Hipgnosis’s recent trading price and its Net Asset Value (NAV). Concord also relayed that the Hipgnosis Board of Directors has unanimously recommended the increased offer to Hipgnosis shareholders.

Specifically, ‘Concord Bidco’ noted that shareholders representing 31.27% of Hipgnosis’s issued shares have already agreed to support the offer. Other shareholders can vote on the deal here.

“We are pleased to announce this increased offer for Hipgnosis, which has again been unanimously recommended by its Board and has the support of shareholders representing 31.27 percent of Hipgnosis’ issued share capital,” relayed Bob Valentine, CEO of Concord.

“We continue to believe that this is the best outcome for Hipgnosis shareholders as it provides them with the opportunity to realize their investment in cash at a significant premium to the price where the shares were trading before our bid last week.”

“The Hipgnosis Directors believe that the Increased Concord Offer is in the best interests of Hipgnosis Shareholders as a whole, and accordingly unanimously recommend that Hipgnosis Shareholders vote in favor of the resolutions required to implement the Increased Concord Offer to be proposed at the Court Meeting and the General Meeting which are due to be held on or around 10 June 2024,” the statement continues.

Concord noted that it would finance the acquisition offer through a combination of debt (provided by Apollo Funds) and its own equity, with Apollo holding a minority position.

Scroll down through the various details of the offer, and you’ll find this: Concord also noted that it plans to continue its previous plans with Hipgnosis as an asset but may sell up to 30% of the assets within 18 to 24 months.

“The Increased Concord Offer does not change Concord Bidco’s intentions as regards Hipgnosis as set out in the Rule 2.7 Announcement, save that Concord Bidco now intends to sell up to 30 percent of Hipgnosis’ assets within 18 to 24 months following completion of the Acquisition,” the offer stated.

The offer shifts the attention back to Blackstone, though Digital Music News is also hearing rumblings of other potential bidders coming forward.  Blackstone already owns parts of Hipgnosis, so a successful bid for Hipgnosis Songs Fund would give them more control over the music rights industry.

Separately, all eyes are now glued to Hipgnosis Songs Management, which is stubbornly sticking to its contractual rights and signaled its willingness to fight. HSM, Hipgnosis Songs Fund’s investment advisor, appears resolutely ready to protect its position amidst the bidding war.

A key issue is a “call option” in the investment advisory agreement between HSM and HSF. This option would allow HSM to acquire HSF’s assets in specific scenarios, potentially hindering a sale to a third party.

HSM insists that the company cannot legally terminate the agreement without honoring HSM’s contractual rights. In a notice issued this week, HSM clearly stated that they are prepared to take legal action and even exercise the call option to protect their interests.

Separately, Blackstone, which owns a majority stake in HSM, emphasized that its offer for HSF is independent of any influence from founder Merck Mercuriadis.

Looking ahead, the ‘HSM factor’ could spark legal battles or drive up the price in an intensified bidding process.

Stay tuned.

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Where Will You Stand After the TikTok Ban? DMN Pro Subscribers Already Have a Handle On This Question https://www.digitalmusicnews.com/2024/04/24/tiktok-ban-music-industry-fallout-research/ Wed, 24 Apr 2024 16:30:31 +0000 https://www.digitalmusicnews.com/?p=288127 TIkTok ban edges closer to reality (photo: Ian Hutchinson)

A TikTok ban edges closer to reality following Senate and Presidential approvals (photo: Ian Hutchinson).

The music industry is pondering what happens next as the ink dries on President Biden’s authorization of a Congressional bill that includes a TikTok divestiture order. DMN Pro subscribers have already parsed through a detailed breakdown of the potential winners and losers following a TikTok ban, thanks to our exhaustive white paper on the topic.

For those just tuning in: Congress recently passed — and President Biden just signed — a bill that mandates that Chinese parent company ByteDance must sell TikTok within roughly nine months. If that doesn’t happen, the app faces a ban in the United States.

The legislation springs from national security concerns regarding Chinese access to American user data and the potential for propaganda dissemination. Teenage TikTokers aren’t sold on the seriousness of the threat, though their votes only have so much impact here — literally.

The law’s implementation will likely be highly complicated. As the New York Times neatly sums up: “Now the law faces court challenges, a shortage of qualified buyers, and Beijing’s hostility.”

Almost immediately, TikTok will challenge the sale mandate in court, arguing it violates the company’s and its users’ First Amendment rights. Finding a qualified buyer with sufficient funds and government approval also poses challenges, as does the technical difficulty of separating TikTok’s technology from its Chinese parent company.

Furthermore, China’s role is a significant factor. Chinese government officials have opposed a forced sale of TikTok or a resulting TikTok ban. It’s possible China may enact export restrictions that block the sale of core technology like TikTok’s recommendation algorithm or retaliate against American companies as a result of such a sale.

Overall, the coming months (or even years) promise a turbulent period as this sale mandate unfolds. Court battles, the search for a qualified buyer, and potential Chinese interference will heavily influence the ultimate fate of TikTok in the United States.

However, after legal challenges and buyer options are exhausted, TikTok could disappear from the US-based app landscape.

A TikTok ban would be great news for competitors like Meta, YouTube, and Snap, who are expected to receive traffic onslaughts. But the development will prove more complicated for the various sub-sectors of the music industry.

In our latest white paper, DMN Pro takes an exhaustive look at the post-TikTok music industry’s winners and losers, from the major labels to DSPs and artists to UGC competitors. In each case, we also analyze the potential impact over various time horizons — with potentially significant industry changes materializing over the longer term.

DMN Pro subscribers can access the report here and start the ‘what’s next’ strategic planning. If you’re not yet a subscriber, you can become a DMN Pro member here.

Here’s a peek at what’s inside.

REPORT TABLE OF CONTENTS

Introduction: The Post-TikTok Music Landscape Could Give Rise to Unprecedented Changes – With Implications for Fans, Artists, and Companies Alike

Record Labels: Majors and Indies Stand to Lose in Several Areas (and Win in Others) With TikTok’s Ban

        • Graph: A Breakdown of Global Recorded Music Revenue from UGC and Ancillary Licensing Sources
        • Graph: 2023 Global Recorded Music Revenue by Segment

Publishers: Short-Term Losses, Particularly for Smaller Indies, Could Make Way for Long-Term Improvements

Songwriters: A Possible Licensing Revenue Upside Won’t Offset Immediate Discovery Setbacks, Especially for DIY Professionals

Artists: Post-TikTok, Artists At All Career Stages Will Suffer Varied Near-Term Professional Consequences

        • Graph: Selected Artists’ Social Media Followers, YouTube Subscribers, and Spotify Monthly Listeners
          Superstar and Legendary Artists
        • Mid-Level Artists With Substantial Followings
        • Developing and Emerging Artists
        • Pre-Traction Artists
        • Graph: A 2023 Breakdown of Emerging Artists by Home Country

Competing UGC Platforms: Reels, Shorts, and Others Will Be the Clear Winners

Overall Licensing Revenue: Ancillary Setbacks Aside, TikTok’s Ban Will Have a Minimal Licensing Revenue Impact

        • Graph: Universal Music’s Estimated TikTok Revenue Versus Permanent Downloads Revenue, 2020 – 2023

Non-Label Sync Platforms: The Post-TikTok Industry May Look Different for Sync Platforms and Music Libraries

The Fans: More Than a Letdown for Fans, TikTok’s Ban Will Dramatically Affect Music Discovery

DSPs: What Does a TikTok Ban Mean for Spotify, Apple Music, and YouTube Music?

Promoters and Venues: The TikTok Ban’s Significance for Live Music

Report Summary: The Post-TikTok Music Landscape’s Many Changes

By the Dates: A Timeline of TikTok Regulatory Scrutiny, December 2022 – April 2024

One-Sheet Infographic: The Post-TikTok Winners & Losers

 

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Sony Music Publishing Nashville Signs Randall King to Global Deal https://www.digitalmusicnews.com/2024/04/23/sony-music-publishing-nashville-signs-randall-king-to-global-deal/ Tue, 23 Apr 2024 20:18:43 +0000 https://www.digitalmusicnews.com/?p=287942 Sony Music Publishing Nashville Randall King

Photo Credit: Emily McMannis-Coleman

Sony Music Publishing Nashville announces the signing of West Texas’ Randall King to a global publishing agreement — after the country star has amassed over 300 million streams.

Celebrated as country music’s “neo-traditional figurehead,” Randall King has emerged as one of today’s promising new voices in country music, accumulating over 300 million streams with singles like “You In a Honky Tonk,” “Hey Cowgirl,” and “Mirror, Mirror.”

King released his sophomore major label album, Into the Neon, earlier this year, with inspiration drawn from the hues of neon that backlit the early days of his career — from the glowing skies in the West Texas plains where he was raised, to the radiant signs of the nearly 150 honky tonks in which he performs each year. Randall King is currently headlining shows across the US, with tour dates slated across Europe later in 2024.

“Can’t begin to say how excited I am to be joining Sony Music Publishing,” said King (pictured center). “It’s a new era of writing for me and I couldn’t have joined a better team.”

“We are thrilled to champion Randall as he continues to bring a fresh take on traditional country music,” said Aubrey Landon (pictured center left), Director, Creative A&R, Sony Music Publishing Nashville. “His music resonates with authenticity, and we could not be happier to start this next chapter together.”

Release on January 26, Into the Neon features songs including “When My Baby’s in Boots,” co-written by Sony Music Publishing (SMP) songwriters Trannie Anderson, Jordan Walker, and Michael Carter, “Hard to Be Humble,” co-written by SMP’s Ben Hayslip, as well as songs written by artists like Mitchell Tenpenny, Will Jones, and Nate Smith.

In addition to his mainstream acclaim, King has also been celebrated for his deeply personal EPs, like 2020’s Leanna, and his major label album debut, 2022’s Shot Glass.

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