Welcome to Music Enterprise Worldwide’s weekly round-up – the place we ensure 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 maximize their revenue and cut back their touring prices.
After a comparatively quiet few weeks within the music enterprise over the summer time, this week was something however.
On Wednesday (September 6), France-based music streaming service Deezer and Common Music Group introduced the launch of what they name the “first complete artist-centric streaming mannequin”.
The mannequin will see Deezer attribute what it says is “a double enhance” [i.e double the stream weighting] to “skilled artists” who’ve a minimal of 1,000 streams monthly by a minimal of 500 distinctive listeners.
One other key ingredient of the mannequin: what Deezer calls “non-artist noise audio” will likely be de-monetized.
In the meantime, right this moment (September 8), Harmony introduced that it’s set to purchase Spherical Hill’s UK-listed royalty fund in an enormous $468.8 million deal.
Additionally this week, a bombshell report arrived in Sweden from the Svenska Dagbladet newspaper about streaming fraud on Spotify. In accordance with the newspaper, crime networks with hyperlinks to medication and lethal violence have for years been utilizing the platform for cash laundering.
Svenska Dagbladet helps these claims by citing protected sources – together with 4 precise legal gang members primarily based in Sweden and an nameless police agent.
Plus, Warner Music Group entered right into a JV with Elliot Grainge‘s 10K Initiatives, whereas Exceleration Music introduced its acquisition of unbiased distribution/companies firm Redeye.
Right here’s what occurred this week…
1) POPULAR ARTISTS TO GET ‘ROYALTY BOOST’ ON DEEZER AS PLATFORM READIES ‘ARTIST-CENTRIC’ MODEL WITH UNIVERSAL MUSIC GROUP
Common Music Group’s proposed ‘artist-centric’ royalty mannequin for streaming companies has been an enormous speaking level for the worldwide trade this yr – although the finer particulars of what the mannequin would possibly entail hasn’t all the time been clear.
This week, that’s all modified. Deezer and UMG have introduced the launch of what they name the “first complete artist-centric streaming mannequin”, designed, in response to the businesses, “to raised reward the artists, and the music that followers worth probably the most”.
Deezer will launch the mannequin in France subsequent month (October 2023) with further markets globally to comply with within the new yr…
2) CONCORD SET TO BUY ROUND HILL’S UK-LISTED ROYALTY FUND IN A HUGE $468.8M DEAL
Earlier this summer time, MBW reported that Harmony had over USD $550 million in contemporary capital to spend on acquisitions. The corporate’s CEO, Bob Valentine, advised us with confidence: “There are nonetheless alternatives within the market for sizeable acquisitions.”
Effectively, right this moment (September 8), Harmony has confirmed that it’s on the verge of pulling off one heck of a sizeable transaction.
Alchemy Copyrights, LLC, buying and selling as Harmony, has agreed phrases on a deal whereby it can purchase the whole lot of Spherical Hill Music Royalty Fund (RHM) – the UK-listed fund operated by Spherical Hill Music.
The deal values the complete issued and to-be-issued share capital of RHM – which at the moment trades on the London Inventory Trade – at roughly USD $468.8 million, the 2 corporations mentioned in an announcement right this moment.
Beneath the phrases of the acquisition, Spherical Hill’s scheme shareholders will obtain USD $1.15 per share in money…
Picture Credit score: photo_gonzo/Shutterstock
3) MULTIPLE CRIMINAL GANG MEMBERS CONFIRM THEY’VE USED SPOTIFY FOR MONEY LAUNDERING IN BOMBSHELL NEW REPORT IN SWEDEN
It’s no secret that streaming fraud exists. It’s a factor of nice concern for the music enterprise, and a large problem (aka recreation of whack-a-mole) for music streaming platforms like Spotify to cope with.
Now, an explosive new report from Svenska Dagbladet in Sweden focuses on the tip objective of streaming fraud on Spotify for organized criminals: laundering cash.
In accordance with the newspaper, crime networks with hyperlinks to medication and lethal violence have for years been utilizing the platform for this objective…
Picture credit score: Joseph Morrison
4) ELLIOT GRAINGE JOINS WARNER MUSIC GROUP AS 10K PROJECTS STRIKES JV WITH WMG
Warner Music Group has entered right into a three way partnership with 10K Initiatives, the Los Angeles-based label based in 2016 by Elliot Grainge.
10K Initiatives will develop into a standalone label inside the WMG ecosystem, bringing its roster and workforce into the WMG fold.
It’s understood that Warner will personal barely north of fifty% of 10K Initiatives because of the deal, with Grainge sustaining practically half of the corporate…
5) REDEYE, DISTRIBUTION PARTNER OF BEGGARS, DOMINO AND OTHER LEADING INDIE LABELS, ACQUIRED BY EXCELERATION MUSIC
Massive information on the planet of distribution. Unbiased digital and bodily distribution/companies firm Redeye has been acquired by Exceleration Music for an undisclosed sum.
Redeye represents a number of of the world’s most vital unbiased labels, within the US and globally, together with Beggars Group, Domino, New West, Yep Roc, Sundazed, Saddle Creek, Mother+Pop, Kemado/Mexican Summer time, Stones Throw, Warp, Drag Metropolis, Actual Gone, Modern Leisure, Carpark, !K7, Thrill Jockey, Luaka Bop, Partisan, Sargent Home, Ninja Tune, Barsuk, and Daptone, in addition to Exceleration’s personal labels.
Based by Tor Hansen and Glenn Dicker, Redeye is headquartered in North Carolina, with a workforce of over 120 throughout 15 places spanning the US, Canada, Europe, the UK and Australia….
MBW’s Weekly Spherical-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
