Welcome to Music Enterprise Worldwide’s weekly round-up – the place we be certain 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 scale back their touring prices.
The worldwide recorded music enterprise generated $26.2 billion in commerce revenues in 2022, up 9.0% YoY.
These have been the headline stats from IFPI‘s World Music Report this week. However how did that examine to Goldman Sachs‘ predictions for the business?
It’s… difficult. MBW defined how and why this week, in our most-read story of the previous 5 days.
Elsewhere this week, TikTok was below hearth within the US – as its international CEO stepped ahead to take the flak, and make pro-ByteDance arguments.
He did so within the face of issues over whether or not TikTok shares information with the Chinese language authorities about its 2 billion-plus customers worldwide.
In the meantime, a brand new participant within the tune catalog acquisition house launched, with $100 million in its pocket, in AMR Songs.
Plus, MBW reported – by way of Luminate information – that almost 1 / 4 of all tracks on international music streaming providers acquired zero performs final 12 months. Zero. Performs.
Right here comes the most important music biz headlines of the week…
1) GOLDMAN SACHS PREDICTED THE GLOBAL RECORDED MUSIC BIZ WOULD GENERATE $27.9BN IN 2022. IT DIDN’T. HERE’S WHY.
Spring/summer season 2022 was a buoyant interval for the worldwide recorded music enterprise.
The sector’s commerce physique, IFPI, had simply printed its annual World Music Report (GMR) displaying that worldwide document biz wholesale revenues in 2021 have been up by USD $4 billion YoY.
Then, in June 2022, got here Goldman Sachs, with an replace of its personal paper (and arguably probably the most influential tome in existence for music enterprise investments): Music In The Air.
Within the wake of IFPI’s glad tidings about 2021, Goldman upgraded its forecasts for the worldwide recorded music biz’s future prosperity.
MBW’s headline on the time captured the celebratory temper: ‘Goldman Sachs: The worldwide music business goes to be value much more than we thought.’
Goldman predicted in its up to date report that the worldwide recorded music enterprise would generate USD $27.9 billion in annual commerce revenues in 2022.
Nonetheless, IFPI confirmed yesterday (March 21) that the true income quantity for the worldwide recorded music biz in 2022 was $1.7 billion smaller than this Goldman forecast, at $26.2 billion.
Fortunately, the fact isn’t practically as gloomy as that comparability suggests.
It’s only a bit difficult…
2) TIKTOK CEO: ‘ALMOST HALF’ OF US POPULATION USES THE APP, AND A BAN WOULD ‘DAMAGE’ THE COUNTRY’S ECONOMY
TikTok now has 150 million customers within the US, up from 100 million it stated it had in 2020.
The short-form video app, owned by China’s ByteDance, revealed the quantity on Tuesday (March 21) as the corporate faces rising calls from lawmakers to have it banned within the US on account of nationwide safety issues.
“This milestone coincides with a important interval for TikTok. Sure politicians have raised issues concerning the potential banning of our platform, which might immediately have an effect on all 150 million Individuals who’ve embraced TikTok,” the corporate stated.
In a video posted to the app, TikTok CEO Shou Chew stated that the variety of customers within the US works out to “virtually half of the US coming to TikTok”….
3) $100M-BACKED RIGHTS COMPANY AMR SONGS LAUNCHES, ACQUIRES INTEREST IN CATALOG OF THE LOVIN’ SPOONFUL’S JOHN SEBASTIAN
A well-funded new participant has made itself recognized within the US music enterprise.
AMR Songs (AMR), described as a brand new “music publishing, rights administration, and catalog advertising firm”, has launched this week with backing from non-public capital.
The Los Angeles and New York-based agency says it is going to use this capital for catalog acquisitions and frontline operations, together with artist and songwriter growth, label distribution, movie and TV licensing, digital advertising, and extra.
Sources inform MBW that AMR Songs has raised USD $100 million in backing from institutional buyers.
MBW has additionally discovered from sources that AMR Songs is already engaged on its second spherical of funding…
4) MULTIMEDIA MUSIC RAISES ANOTHER $100M, ACQUIRES CATALOG OF EMMY-WINNING COMPOSER SEAN CALLERY
Multimedia Music has secured what it says is a $100 million funding “uplift” from its group of buyers and lenders (Metropolitan Companions Group, Bardin Hill, Pinnacle Financial institution and Areas Financial institution).
The brand new funding implies that the corporate’s complete funds raised up to now grows from $100 million to $200 million.
Led by business veterans Phil Hope and James Gibb, Multimedia Music launched in early 2022 with an preliminary $100 million in funding from Metropolitan Companions Group, Pinnacle Financial institution and Areas Financial institution to amass catalogs of movie and TV music rights from manufacturing corporations, composers and different rights holders….
5) 38 million tracks on music streaming providers have been performed ZERO occasions in 2022.
To begin with, verify this: There are 67.1 million tracks sitting on music streaming providers in the present day that, within the 2022 calendar 12 months, attracted 10 or fewer streams apiece, globally.
That 67.1 million determine represents slightly below half (42%) of your entire catalog of tracks obtainable on worldwide music streaming providers as you learn this (primarily based on ISRCs).
Put together your self for the following statistical haymaker: Practically 1 / 4 (24%) of the 158 million tracks on music streaming providers monitored by Luminate in 2022 attracted ZERO performs that 12 months.
That’s roughly 38 million tracks. 38 million! Zero performs!