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 maximize their revenue and scale back their touring prices.
This week we realized that $1 billion-valued Create Music Group has acquired once more, this time snapping up indie digital music label Monstercat.
Warner Music Group launched its calendar Q1 earnings, exhibiting income progress of 1.2% YoY, whereas subscription streaming income grew 3.2% YoY.
In the meantime, Common Music Group filed a movement to dismiss Drake‘s amended defamation criticism towards the corporate, calling Drake’s authorized motion an “try to avoid wasting face” after shedding a rap battle towards Kendrick Lamar.
We additionally realized this week that Google has teamed up with Vary Media Companions to launch a movie and TV manufacturing firm referred to as 100 Zeros. Google transferring into the leisure IP house might have implications for the music {industry}.
Lastly, MBW founder Tim Ingham‘s newest column casts an eye fixed on the irony of AI music-making platform Udio teaming up with Audible Magic for “content material identification,” and why UMG could also be “assured” about its acquisition of Downtown Music, regardless of an EU investigation.
The corporate, which was valued at $1 billion following a $165-million funding spherical final yr, has swooped for unbiased digital music label Monstercat.
As a part of the deal, Create mentioned it has dedicated to investing a further $50 million over the following two years in artist growth, advances, and platform assist throughout Monstercat’s roster, “to speed up each new signings and long-term profession progress”.
Monetary phrases past the $50 million funding dedication weren’t disclosed.
Monstercat has employees based mostly in Vancouver, Toronto and Los Angeles…
Warner Music Group revealed its calendar Q1 (fiscal Q2) outcomes on Thursday (Could 8), with CEO Robert Kyncl acknowledging industry-wide challenges on the corporate’s earnings name.
“We acknowledge it is a second of transition within the {industry} and for our firm,” Kyncl acknowledged on the decision, whereas sustaining his outlook for future progress.
WMG reported company-wide income progress of 1.2% YoY at fixed foreign money for calendar Q1, with recorded music revenues rising 0.7% YoY, and music publishing income rising 3% YoY. Subscription streaming grew 3.2% YoY, in comparison with double-digit progress in the identical quarter final yr.
In his opening remarks, Kyncl recognized particular components behind these outcomes: “Our ends in [calendar Q1] replicate a lighter launch schedule, market share stress in China and a tricky year-over-year comparability in subscription streaming, the place we noticed sturdy double-digit progress within the prior yr quarter…”
Common Music Group has filed a movement to dismiss Drake’s amended defamation lawsuit over Kendrick Lamar’s hit monitor Not Like Us, arguing that the lyrics are “nonactionable opinion and rhetorical hyperbole” somewhat than assertions of reality.
Drake filed an amended criticism final month that added new allegations relating to Lamar‘s efficiency in the course of the Tremendous Bowl LIX halftime present in February.
In a authorized memorandum filed on Could 7, and obtained by MBW, UMG asks the court docket to dismiss Drake’s amended criticism with prejudice.
The memorandum characterizes the lawsuit as “Drake’s try to avoid wasting face for his unsuccessful rap battle with Lamar” and describes the “new allegations” as “astonishing…”
The combination of Large Tech and the leisure {industry} has taken one other step, this time with information that Google has launched a movie and TV manufacturing firm.
Enterprise Insider reported this week that Google has quietly launched 100 Zeros, a movie and TV manufacturing initiative that received’t be producing content material for YouTube (a la YouTube Originals), as an alternative providing it on the market to conventional studios and streaming providers like Netflix.
(“100 Zeros” is a cryptic manner of claiming Google. A one with 100 zeros after it’s a googol, the amount for which Google was named).
For these within the music {industry}, one element about 100 Zeros stands out: It’s a part of a multi-year partnership with Vary Media Companions, a administration and manufacturing firm identified for its involvement in music…
Tim Ingham‘s newest MBW+ Assessment column is now on-line for subscribers. It covers:
1) The comedy of Udio partnering with Audible Magic for “content material identification” whereas concurrently being sued by majors for copyright infringement. As Udio churns out AI-generated songs with lyrics from Yesterday and Wonderwall, its so-called “dedication to content material provenance” somewhat sticks within the throat.
2) Why UMG is perhaps remaining “assured” about closing the $775M Downtown acquisition regardless of an EC investigation.
3) The FUGA issue: Whereas indies protest UMG’s potential possession of distribution powerhouse FUGA, the place have been they in 2020 when Downtown’s Justin Kalifowitz acquired it for a reported ~$40M? Contemplating Merlin‘s $1.48B in annual revenues, might the unbiased sector have secured this important infrastructure themselves…?
MBW’s Weekly Spherical-Up is supported by Centtrip, which helps over 500 of the world’s best-selling artists maximise their revenue and scale back their touring prices.Music Enterprise Worldwide
