Welcome to Music Enterprise Worldwide’s weekly round-up – the place we be sure 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 earnings and cut back their touring prices.
Music streaming big Spotify lastly elevated the value of its flagship Premium subscription within the US this week, by $1, to $10.99
The corporate introduced the brand new pricing on Monday morning (July 24), additionally saying will increase in 52 different markets, together with the UK, Canada, Brazil, Spain, France, Australia, Indonesia, Israel, Sweden, and Mexico.
The announcement arrived a day earlier than SPOT revealed its Q2 outcomes, during which it reported that its world Premium Subscriber base grew to 220 million paying customers within the quarter (ended June 30), up 17% year-on-year.
Common Music Group additionally revealed its Q2 outcomes this week, reporting revenues of EUR €2.697 billion (USD $2.93bn) for the quarter, up 8.8% YoY at fixed foreign money.
Amongst the opposite highlights from UMG’s Q2 was a 13% leap in subscription streaming revenues to achieve €1.068 billion ($1.16bn).
That consequence, in keeping with UMG, was “pushed primarily by the expansion in world subscribers in addition to the affect of worth will increase at sure platforms”.
Elsewhere this week, Spotify CEO Daniel Ek offered 675,000 Spotify shares price $100 million, whereas Reuters reported that US efficiency rights firm BMI is in renewed sale talks.
Right here’s what occurred this week…
1) UNIVERSAL MUSIC GENERATED $2.93BN IN Q2 – BOOSTED BY SALES FROM SUPERSTARS LIKE TAYLOR SWIFT AND KING & PRINCE
On Tuesday (July 25), the world’s greatest subscription music streaming service, Spotify, introduced its Q2 outcomes.
On Wednesday, it was the flip of the world’s largest music rights firm, Common Music Group, whose monetary outcomes for the three months to the tip of June and the primary half of the yr had been revealed after the shut of the Euronext in Amsterdam on Wednesday (July 26).
The headline determine from UMG’s Q2 outcomes: the music firm generated revenues of EUR €2.697 billion (USD $2.93bn) in the course of the quarter throughout all of its divisions (together with recorded music, publishing and extra). That Q2 income determine was up 8.8% YoY at fixed foreign money….
2) SPOTIFY IS RAISING ITS PRICE IN THE US AND 52 OTHER MARKETS. HOW MUCH MONEY WILL THAT MAKE THE MUSIC INDUSTRY?
As anticipated, on Monday (July 24), Spotify – after 12 lengthy years – lastly introduced a ten% rise in its flagship particular person Premium subscription worth in america, up from USD $9.99 per thirty days to $10.99 per thirty days.
Not solely that: Spotify can also be elevating the value of its different subscription plans within the US. This consists of its Household Plan, which strikes up from $15.99 to $16.99 per thirty days; it’s the second time SPOT has upped this specific worth level within the States (the primary was in 2021), and brings Spotify’s Household Plan pricing in keeping with that of different providers akin to Apple Music and YouTube Music.
The (a lot) bigger-picture information?
Spotify isn’t simply growing its costs within the US – it’s additionally upping its subscription price (throughout varied plans, together with particular person Premium) in a whopping 52 different markets, together with the UK, Canada, Brazil, Spain, France, Australia, Indonesia, Israel, Sweden, and Mexico.
But how a lot will this new spherical of worth will increase from Spotify be price to the corporate – and to the music rightsholders to whom it pays out round 70% of its earnings?
3) BMI ‘IN DISCUSSIONS WITH OUTSIDE PARTIES’ AFTER SCRAPPING SALE PLANS IN 2022
This week, Reuters reported that US efficiency rights firm BMI (Broadcast Music Inc.) is “as soon as once more exploring choices together with a sale”.
The report arrived round a yr after BMI scrapped plans for a multi-billion greenback firm sale following underwhelming provides.
BMI President & CEO Mike O’Neill issued a memo to employees this week addressing “press articles [that] have come out at this time speculating that BMI is contemplating a sale”.
Within the memo, obtained by MBW, O’Neill writes that, “Not surprisingly, curiosity in BMI has continued since we introduced a yr in the past that we had been now not contemplating a sale of our firm”.
He added: “Since then, the success of our enterprise mannequin change and our dedication to investing in BMI to develop the worth of our associates’ music has solely intensified that outdoors curiosity…”
4) DANIEL EK SELLS $100M WORTH OF SPOTIFY SHARES
Spotify CEO Daniel Ek is promoting 675,000 Spotify shares price $100 million. That’s in keeping with an SEC submitting that went dwell on Thursday (July 27).
J.P. Morgan Securities is called within the submitting because the dealer for the sale.
The submitting additionally reveals that these shares are to be offered by D.G.E Investments Restricted, an entity not directly wholly owned by Ek…
5) HAVING PAID OUT OVER $250M TO ITS MEMBERS TO DATE, BEATSTARS STRIKES STRATEGIC PARTNERSHIP WITH AI MUSIC STARTUP LEMONAIDE
BeatStars revealed this week that it has entered right into a strategic alliance with an AI music startup referred to as Lemonaide, which has developed an AI-powered plug-in that generates concepts for beats.
BeatStars additionally confirmed in its newest announcement that it has now paid out over $250 million to its members by means of its market and publishing providers so far (The corporate struck a partnership with Sony Music Publishing in 2020)…
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