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Welcome to Music Enterprise Worldwide’s weekly round-up – the place we be certain that you caught the 5 greatest 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 revenue and cut back their touring prices.
This week, the music {industry} was shocked and saddened to listen to of the passing of Michael Gudinski, the globally revered music entrepreneur and founding father of Mushroom Group, who died peacefully in his sleep at residence on Monday (March 1), aged 68. The music legend will probably be honoured at a state funeral in Melbourne, Australia.
In the meantime, in an industry-first transfer, SoundCloud is introducing what it calls “fan-powered royalties” – its personal branding of the user-centric mannequin – which it says will imply “every [SoundCloud] listener’s subscription or promoting income is distributed among the many artists that they hearken to, reasonably than their performs being pooled”.
Elsewhere, Common Music Group generated $8.4bn in 2020 and spent over $1.7bn on catalog acquisitions and artist advances, in keeping with father or mother firm Vivendi’s newest monetary outcomes.
Additionally, Jack Dorsey-led monetary providers firm Sq., Inc. is buying a majority possession stake in music streaming platform, TIDAL for $297 million. Jay-Z is anticipated to hitch Sq.’s Board of Administrators topic to the closing of the transaction.
Plus, Center Japanese Spotify rival Anghami has entered right into a merger settlement with publicly traded SPAC known as Vistas Media Acquisition Firm. The deal will end in Anghami itemizing on the NASDAQ in New York below the brand new image ANGH.
1) MICHAEL GUDINSKI, FOUNDER OF AUSTRALIA’S MUSHROOM GROUP, DIES AGED 68
Michael Gudinski, the globally revered music entrepreneur and founding father of Mushroom Group, has died aged 68.
The shock information was confirmed on Monday by media in Gudinski’s homeland of Australia.
Gudinski is survived by his spouse Sue and youngsters Kate and Matt, and grand-children 9-Rose and Lulu.
“It’s with profound unhappiness that we announce the passing of Michael Gudinski AM in a single day,” Mushroom Group stated in an announcement.
“The much-loved Australian music legend died peacefully in his sleep at his residence in Melbourne, Australia.”
Gudinski will probably be honoured at state funeral in Melbourne, Australia….
2) SOUNDCLOUD IS ABOUT TO REVOLUTIONIZE STREAMING PAYOUTS, LAUNCHING USER-CENTRIC ROYALTIES FOR 100,000 INDIE ARTISTS
One of the crucial hotly-debated ideas within the fashionable music rights enterprise is user-centric licensing. This mannequin sees streaming royalties paid out primarily based on particular person subscriber habits – with a share of every subscriber’s subscription price being distributed solely to the artists/labels they’ve individually listened to that month.
This mannequin is in distinction to the present ‘professional rata’ streaming payout system, which sees all royalties on a service like Spotify pooled on the finish of every cost interval… after which recorded music rights-holders are paid in keeping with their market share of complete performs throughout the platform.
The latter mannequin, clearly sufficient, most advantages international pop superstars; the previous mannequin, it’s thought, would convey extra profit to indie artists and to extra area of interest genres equivalent to classical and jazz.
Critics of the ‘professional rata’ mannequin level out that it usually results in a proportion of a person’s subscription price being paid to artists whose music they haven’t even performed.
SoundCloud is about to settle this debate as soon as and for all….
3) UNIVERSAL MUSIC GROUP GENERATED $8.4BN IN 2020… AND SPENT OVER $1.7BN ON CATALOG ACQUISITIONS AND ARTIST ADVANCES
Common Music Group rode out 2020 with a delicate, if vital, income uplift: complete annual gross sales throughout all of its divisions (together with publishing and recorded music) rose 4.7% YoY.
However the true standout story for UMG final 12 months – maybe music to the ears of these hoping it’ll hit a ginormous valuation within the coming months – was its revenue efficiency.
In 2020, UMG posted complete revenues of €7.43bn ($8.40bn), with an EBITDA of €1.49bn ($1.68bn). That represented a formidable annual EBITDA margin of 20%.
Because of this, Common was almost $250m (€220m) extra worthwhile on an EBITDA foundation in 2020 than it was in 2019….
4) Sq. to purchase Jay-Z’s TIDAL for $297m
Jack Dorsey-led monetary providers firm Sq., Inc. has entered right into a definitive settlement to amass a majority possession stake in music streaming platform, TIDAL.
Sq. expects to pay a mixture of money and inventory of $297 million for a ‘vital majority’ possession stake. Present artist shareholders would be the remaining stakeholders.
TIDAL will function independently inside Sq., alongside the Vendor and Money App ecosystems.
In keeping with the businesses, the acquisition “extends Sq.’s function of financial empowerment to a brand new vertical: musicians”.
The media launch added: “Artists are entrepreneurs with a dream and deserve entry to techniques, instruments, and monetary freedom to succeed in these desires at each stage of their profession”.
5) SPOTIFY RIVAL ANGHAMI TO LIST ON NASDAQ VIA MERGER WITH VISTAS MEDIA ACQUISITION COMPANY
Outstanding Center Japanese Spotify rival Anghami has entered right into a definitive merger settlement with publicly traded particular function acquisition firm (SPAC) Vistas Media Acquisition Firm Inc.
The deal will end in Anghami itemizing on the NASDAQ in New York, with the mixed firm set to function below the Anghami identify and commerce below the brand new image ANGH.
The transaction implies an preliminary pro-forma enterprise valuation of roughly $220 million, or 2.5x 2022 estimated revenues. The transaction is anticipated to shut in Q2 of 2021….
Welcome to Music Enterprise Worldwide’s weekly round-up – the place we be sure to caught the 5 greatest 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 revenue and cut back their touring prices.
Music Enterprise Worldwide
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