From UMG’s $1m an hour, to Paul McCartney’s music streaming campaign: It’s MBW’s Weekly Spherical-up
Welcome to Music Business Worldwide’s weekly recap we make sure you got the top five stories of the past seven days in our headlines. MBW Roundup is backed by Centtrip, which helps over 500 of the world’s best-selling artists maximize their income and reduce their tour costs.
If you want to know how healthy the music rights business is today, here’s what you know:
Universal Music Group had revenue of more than $ 1 million per hour for the first quarter of this year.
Vivendi released UMG’s first quarter results this week, revealing that the music company generated $ 2.2 billion in music, publishing and other revenue streams.
Vivendi also announced that UMG is expected to go public in Amsterdam in autumn 2021.
A letter sent to the UK government this week, co-signed by Paul McCartney, Led Zeppelin, Sting, Chris Martin and Stevie Nicks, requested that artists be paid differently than “lean back” streaming pieces in the UK UNITED KINGDOM.
For the past five days, Sony Music also praised Apple’s new podcast subscriptions, while Songtradr acquired Pretzel, a platform that provides DMCA-safe music for Twitch and YouTube live streams.
Here is a recap of what happened …
1) UNIVERSAL MUSIC GROUP, PRODUCED MORE THAN 1 MILLION USD PER HOUR IN Q1 … AND EXPECTING TO BE PUBLIC IN AUTUMN
Universal Music Group’s Q1 results have been released courtesy of its majority parent Vivendi. Yesterday (April 22nd) it was expected that UMG would go public in Amsterdam in autumn 2021.
Let’s stick with the first three months of this year for now … another impressive time for UMG and its CEO and Chairman, Sir Lucian Grainge.
According to Vivendi’s results, Universal Music Group’s total revenue – including music recordings, publications and other sources of income – was EUR 1.81 billion (US $ 2.20 billion) in the first quarter, up 9.4% corresponds to the previous year.
Just because we know MBW readers appreciate these stats: That $ 2.20 billion quarterly revenue was $ 24.5 million per day, or … yep … just over $ 1 million per hour for the entire first quarter.
2) Why are Paul McCartney, Led Zeppelin, Sting, Chris Martin and Stevie Nicks demanding “Streaming Fixes” from the UK government?
As you probably know, a UK parliamentary inquiry is currently looking into the economics of streaming music in the UK.
One of the suggestions they’re thinking about is whether algorithmic games like Spotify (i.e. games chosen for you as opposed to games where you pressed play) should be treated under the same rules of “fair” compensation “On the radio in the UK. Ergo: Whether 50% of the money generated by these “lean-back” games should go directly to artists, regardless of how little they are earned in the Land record label.
Unsurprisingly, record labels aren’t particularly interested in this idea – and artists are very interested in this idea.
Here’s the big news this week: the stature of the artists calling on the UK government to enforce “fair pay” for streaming services has turned into a blockbuster.
Nikki Meel / Shutterstock3) APPLE MUSIC JUST MADE MANY DEMANDS WHAT IT PAYS ARTISTS. LET’S LOOK CLOSER.
Apple Music made a splash last Friday (April 16) when it made some proud claims about its payouts to artists and songwriters – and, as it relates, some potentially damaging claims about Spotify’s equivalent distributions.
These claims all surfaced in an email newsletter Apple sent out to the industry and the artist community. This newsletter has now been received from MBW and will be republished below.
Apple doesn’t explicitly mention Spotify in the letter at all, although you wouldn’t have guessed it from subsequent media coverage.
This is especially true of certain headlines related to Apple’s claim, “Our average rate per game is $ 0.01.”
4) SONY MUSIC APPLAUDS APPLE’S NEW PODCAST Subscription Launch
Spotify, which has invested hundreds of millions of dollars in podcasting over the past few years, sent out a user survey in November showing it is considering launching a standalone podcast subscription service.
Apple just beat Spotify. This week, tech giant Apple unveiled Podcasts Subscriptions, what it calls a “global marketplace for listeners to discover premium subscriptions offered by their favorite creators along with millions of free shows on Apple Podcasts.”
Apple’s official release announcing the news includes quotes from executives of various media and entertainment brands who have welcomed the launch of the new service.
Some of these companies are Tenderfoot TV, Pushkin Industries, Radiotopia by PRX, QCODE, NPR, the Los Angeles Times, and The Athletic.
Dennis Kooker, President Global Digital Business and US Sales at Sony Music Entertainment, is one of them.
5) SONGTRADR ACQUIRES PRETZEL, WHICH PROVIDES DMCA PROOF MUSIC FOR TWITCH AND YOUTUBE LIVESTREAMERS
Who will be the fastest growing music company by 2021? Don’t count out Songtradr.
In the past six months alone, the Los Angeles-headquartered company, which describes itself as “the world’s largest marketplace for B2B music licenses,” has acquired the multi-million dollar music and sound design company Song Zu as well as UK-based dubbing licensing company Cuesongs.
In addition, Songtradr, which raised $ 30 million in a Series C round last summer, recently launched a new branded division, Vinyl By Songtradr, led by ex-UMG manager Mike Tunnicliffe and ex-Coca-Cola -Manager Joe Belliotti launched.
This week, Songtradr brought more important news with an acquisition that brings it into a rapidly growing area of the modern music business.
Welcome to Music Business Worldwide’s weekly recap we make sure you got the top five stories of the past seven days in our headlines. MBW Roundup is backed by Centtrip, which helps over 500 of the world’s best-selling artists maximize their income and reduce their tour costs.Music business worldwide