welcome to world music businessweekly roundup – guaranteed to catch up on the 5 biggest stories making headlines over the past 7 days. MBW Roundup is supported by: Centriphelps over 500 of the world's best-selling artists maximize income and reduce touring costs.
The start of a new year is often a time when business leaders make their resolutions clear. next year's planas a way to keep colleagues focused on a common goal and reassure them that there is indeed a grand vision behind their day-to-day work.
Grainge laid out his specific vision for the new year in a memo to staff. Following last year's successful (so far) move to an „artist-centric“ royalty payment model on streaming services, UMG's next year will focus on: „Strengthening artist-fan relationships through superfan experiences and products.“
In his memo to WMG staff, Kyncl laid out a broad vision for the approach Warner should take over the next decade. Core focus areas identified by Kyncl include: increase engagement with music, Increase the value of musicand Evolving the way WMG employees collaborate.
Last week also saw the release of the first new year data and statistics looking back at 2023. This included market monitors. Luminate year-end music reportI discovered that 184 million Music tracks on audio streaming services tracked via ISRC; 158.6 million of them or 86.2%now less than 1,000 plays.and massive 45.6 millionor 24.8%, Obtained There is no play at all.
Another data point came from the United Kingdom. Entertainment Retailers Associationreports that annual consumer spending on music streaming subscriptions in the UK will increase in 2023 9.8% compared to previous year to British Pound 1.866 billion (US$2.32 billion). spotify's Ten% There's no doubt that last summer's price increase for individual premium subscriptions had something to do with it.
finally, sound cloud He confirmed that he may sell his company this year, but only if the board finds out. The right “long-term” buyer. CEO Eliah Seaton He told MBW there was a „universe of opportunity“ ahead of the company, which turned profitable last year.
At least for the past year music industry leader He has expressed concern about the influx of music into streaming services.
Some worry that professional and popular artists will underperform under streaming's dominant pro-rata royalty system. A share of the royalty pie Diluted by paying for lower quality trucks.
others are concerned that high quality artist It will simply be drowned out by this tsunami of new materials. Last year's news heightened that concern. 120,000 new trucks Uploaded to streaming services daily.
Such considerations are currently influencing the policies of major streaming services in particular. spotify.
In a movement that seems to have been influenced by universal music group “Artist-centric” strategy from this quarter (Q1 2024) onwards; spotify We plan to no longer pay royalties to tracks that attract attention. Less than 1,000 views Used on that platform in the past 12 months.
I have one very relevant question: JHow many songs currently have less than 1,000 plays per year on streaming services, and how many don't get any plays at all?
According to a new report from Market Monitor, the answer is luminate,teeth so many…
July 2023 will be the first time in 15 years that spotify We have increased the price of our mainstay subscriptions. England (and many other regions).
Since then, individuals have been premium Spotify subscriptions now cost £10.99 in the UK, up from £9.99. The price of the platform's family plan has changed from £16.99 per month to £17.99 per month.
This fine-tuning is Spotify Pricing should have a significant impact on the value of the UK market: data collected by the Competition and Markets Authority (CMA) shows that Spotify's market share of all monthly active users ('free' and 'premium') of music streaming in the UK was over 50% in December 2021.
Now, for the first time, I can see the impact. Spotify UK (2023 price rise within official industry figures, according to the world's third largest recorded music market) IFPI).
british Entertainment Retailers Association (era) is an industry association whose members include Spotify. Amazon, YouTubeSoundcloud.
January 9th, era Latest data shows annual consumer spending on music streaming subscriptions increased in 2023 9.8% Compared to the previous year British pound 1,866 million pounds (2.32 billion USD)…
At the beginning of 2023, universal music group Chairman and CEO Sir Lucian Grainge made a new call streaming paymentsmodel This was stated in a New Year's note to the company's employees around the world.
Last year, that plan became a reality. UMG– Approved “artist-centric” model announced Deezer During September.
The world's largest subscription music streaming platform, spotifyIt also incorporates elements of. universal music group As part of major changes planned for the service this quarter, we've introduced an „artist-centric“ loyalty model.
Looking ahead to the remainder of 2024, UMG's Grainge said:Pioneering artist-centric strategy Expand its range. ”
His latest comment is new year memo The document for 2024 was issued to the company's global team on Tuesday (January 9) and was obtained by MBW.
Mr. Grainge made the following statement: Nextconcentration UMG's strategy.
“We first focused on a more equitable approach. assign of streamingpie “By addressing fraud and other aspects that deprive artists of their rightful remuneration, we can resolve the issue among genuine artists,” he explained.
“ The next focus of our strategy will be growing up Get a piece of the pie for every artist by strengthening artist-fan relationships. super fan experience and product”
Grainge said UMG is „already in advanced discussions with our platform partners regarding this stage and will make further announcements in the coming months.“
The health of the music industry in 2024 will be very different than it was 10 years ago. Global recorded music trading revenue in 2014 was half size That's where they are today, according to IFPI data.
But what to do Next Will the industry's global music business last a decade? And how can the biggest players ensure they are in a position to make the most of it?
On Monday (January 8), Warner Music Group CEO Robert Kinkle WMG outlined its plans to do just that in an internal memo sent to the company's global teams.
In a memo obtained by MBW, Kyncl highlighted three key areas that he said WMG would focus on in 2024. Increased involvement with music. Increase the value of music, and We're evolving the way WMG employees work together.
“As we enter the new year, I want us all to remember that our world has fundamentally changed,” Kinkle told WMG employees.
He added, „The music business is in a much different landscape than it was 10 years ago. We're in a strong position now. It's time to move forward into the future…“
It's official: sound cloud It could be sold this year, but only if the company's board finds out. “Long-term suitable” buyer. Otherwise? You might be able to do something completely different.
In a conversation with SoundCloud CEO MBW, Eliah SeatonHe emphasized that there is. „A Universe of Opportunities“ After it became profitable in 2023, it became available to the company he leads.
„Become“ Profitable growth company Final realization of the available opportunities was mission critical sound cloud,” Seaton said. „[Making profits]puts us in the driver's seat. For the first time, we can control our own destiny.“
When asked what that „destiny“ will be, the following is reported. sound cloud Begins negotiations with investment banks regarding possible sale – settings above He added: „Now is the time to consider all strategic alternatives to realize the commercial opportunities before us.
„Maybe that's sound cloud acquisitive, to (buy) things for oneself. That may mean raising new capital. That could mean (impressive) new strategic or financial partnerships, or a combination of the two.Or it might mean the following sale of company A suitable long-term partner…