Welcome to Music Enterprise Worldwide’s weekly round-up – the place we be sure that you caught the 5 largest tales to hit our headlines over the previous seven days. MBW’s round-up is supported by Centtrip, which helps over 500 of the world’s best-selling artists maximise their earnings and scale back their touring prices.
Songwriters scored a significant victory within the US seven days in the past.
Again in January 2018, the Copyright Royalty Board (CRB) dominated that US songwriter/writer royalty charges for on-demand streaming (and different makes use of) have been to rise from 10.5% to fifteen.1% between 2018 and 2022.
You may bear in mind, nonetheless, that Spotify, Amazon, and Google/Alphabet subsequently launched a authorized enchantment towards the brand new charges.
However on July 1, the CRB maintained its resolution to extend the headline fee paid to songwriters within the US to fifteen.1%.
Additionally this week, France-born Spotify rival Deezer made its inventory market debut on the Euronext Paris, after combining its enterprise with I2PO, a Particular Objective Acquisition Firm (SPAC) primarily based in France.
Deezer grew to become 2022’s newest music streaming service to go public through a SPAC merger, following MENA-focused Anghami‘s IPO on the NASDAQ in New York.
In the meantime, the Monetary Occasions reported this week that TikTok has scrapped the enlargement of its TikTok Store characteristic into Europe and the US.
Launched within the UK in December 2021, TikTok Store lets creators promote merchandise instantly on TikTok via in-feed movies and reside streams. Final yr, in an interview with MBW, TikTok’s World Head of Music Ole Obermann mentioned plans for e-commerce options for artists inside its app.
MBW reached out to TikTok to make clear whether or not the claims reported by the FT would have any impression on TikTok’s music-related e-commerce plans outlined by Obermann.
Elsewhere, music veteran Irv Gotti offered a stake in his Homicide Inc. grasp recordings to Iconoclast as a part of a $300 million deal, whereas Common Music Group struck a licensing take care of African music service Mdundo.
Right here’s what occurred this week…
1) SONGWRITERS, REJOICE: SPOTIFY APPEAL FAILS TO STOP COMPOSERS GETTING IMPROVED 15.1% STREAMING ROYALTY RATE IN THE US
The saga is over.
On July 1, the Copyright Royalty Board (CRB) maintained its resolution to extend the headline fee paid to songwriters in america from on-demand streaming providers between the years 2018 and 2022.
To refresh your reminiscence: In January 2018, songwriters loved a significant victory when the CRB dominated that songwriter/writer royalty charges for streaming and different mechanical makes use of have been to rise considerably within the US.
That ruling centered on a rise within the total proportion of streaming providers’ US revenues that legally must be paid by the likes of Spotify to songwriters.
The CRB determined to maneuver that proportion determine up from 10.5% to fifteen.1% throughout the 5 years between 2018 and 2022. It was the biggest fee enhance within the historical past of the CRB.
Nevertheless, Spotify and different corporations, together with Amazon and Google/Alphabet – however NOT Apple – subsequently launched a authorized enchantment towards the brand new charges, arguing that they have been unjustified.
Now, the CRB has made its closing resolution – and the 15.1% fee goes nowhere…
2) DEEZER GOES PUBLIC: SPOTIFY RIVAL MAKES STOCK MARKET DEBUT ON EURONEXT PARIS
Spotify rival Deezer is formally a publicly-listed firm.
The music streaming service made its inventory market debut in its dwelling nation of France on the Euronext Paris on Tuesday (July 5), after combining its enterprise with I2PO, a Particular Objective Acquisition Firm (SPAC) primarily based in France.
The corporate’s public itemizing comes seven years after the plug was pulled on its earlier try at an IPO.
Deezer turns into this yr’s newest music streaming service to turn into a publicly listed firm through a SPAC merger, following MENA-focused Anghami’s latest IPO on the NASDAQ in New York…
3) TIKTOK: MUSIC E-COMMERCE PLANS WON’T BE AFFECTED BY TIKTOK SHOP AVAILABILITY
Final yr, in an interview with MBW, TikTok’s World Head of Music Ole Obermann mentioned plans for e-commerce options for artists inside its app.
He famous that TikTok “not too long ago did a couple of exams within the US the place we labored with big-name artists to allow them to promote bodily merchandise off of their TikTok accounts”.
Obermann cited artists together with Lizzo and Billie Eilish as being concerned in these exams, telling MBW on the time that, “the numbers have been large” including: “It blew us away”.
An article revealed by the Monetary Occasions this week left main questions hanging over the way forward for these e-commerce plans for artists on the platform…
4) MUSIC VETERAN IRV GOTTI SELLS STAKE IN MURDER INC. MASTER RECORDINGS TO ICONOCLAST AS PART OF $300M DEAL
Veteran music government and producer Irv Gotti (Irving Lorenzo), the founding father of rap label Homicide Inc, has offered a stake in his grasp recordings to Olivier Chastan’s acquisition automobile, Iconoclast.
The music exec has introduced that the deal is price $300 million, and in keeping with a media launch, “sees him promote his 50% possession stake of his masters, with further funding for numerous movie and tv tasks”….
5) UNIVERSAL MUSIC GROUP STRIKES LICENSING DEAL WITH AFRICAN MUSIC SERVICE MDUNDO
African music service Mdundo, which listed on the Danish inventory change (the Nasdaq First North Progress Market) in September 2020, has struck a licensing take care of Common Music Group (UMG).
UMG says that its new deal covers key African territories.
Mdundo reviews to have 17 million lively month-to-month customers throughout Africa, which implies the service has added 10 million since February 2021…
MBW’s Weekly Spherical-Up is supported by Centtrip, which helps over 500 of the world’s best-selling artists maximise their earnings and scale back their touring prices.
Music Enterprise Worldwide