Welcome to Music Enterprise Worldwide’s weekly round-up – the place we be certain that 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.
Warner Music Group revealed its calendar Q1 (fiscal Q2) monetary outcomes on Tuesday (Might 9), which confirmed the corporate’s general revenues rose by 4.6% YoY within the quarter.
Talking with analysts on the corporate’s quarterly earnings name after the publication of these outcomes, WMG CEO Robert Kyncl elaborated on his proposal that music from sure forms of artists – particularly those that appeal to subscribers to streaming companies within the first place – ought to be paid greater than different forms of music.
Elsewhere on the decision, he mentioned the subject on everybody’s lips – AI – and its potential constructive (and less-than-positive) results on the music enterprise.
Mentioned Kyncl: “In terms of generative AI, it must be put into correct context. Framing it solely as a menace is inaccurate. Our first precedence is to vigorously implement our copyrights and our rights in identify, picture, likeness, and voice, to defend the originality of our artists and songwriters.”
Additionally this week, MBW dug into Spotify’s newest SEC filings to seek out out who precisely owns the music streaming large.
By way of a mixture of ‘Assertion Of Possession’ SEC filings plus its 20-F annual report – all filed this yr – we’ve been capable of paint an image of Spotify’s possession cap desk right this moment.
In the meantime, at Common Music Group‘s AGM on Thursday (Might 11), UMG shareholders re-appointed Sir Lucian Grainge as UMG’s Govt Director (a place he holds along with being the corporate’s Chairman and CEO) for 5 extra years, and in addition authorized his new remuneration package deal.
Plus, Google‘s AI-powered music generator has been launched publicly, whereas King & Prince set the file for 2023’s fastest-selling album in Japan, after their album Mr.5. offered 1.2 million bodily copies in its first week available in the market.
Right here’s what occurred this week…
Credit score: Warner/press
1) ‘AN ED SHEERAN STREAM IS NOT WORTH THE SAME AS A STREAM OF RAIN FALLING ON A ROOF’: ROBERT KYNCL SAYS MUSIC STREAMING PAYOUT AND PRICING MODELS MUST, AND WILL, CHANGE
Warner Music Group CEO, Robert Kyncl, has beforehand acknowledged his perception that music is “undervalued” in comparison with different types of leisure – and steered {that a} shake-up is due for the way in which royalties are calculated and paid out by streaming companies.
On Tuesday (Might 9), on WMG’s newest quarterly earnings name, Kyncl doubled down on these views, elaborating on his proposal that music from sure forms of artists – particularly those that appeal to subscribers to streaming companies within the first place – ought to be paid greater than different forms of music.
“Each stream [in music today] is valued precisely the identical method,” mentioned Kyncl, referring to the dominant ‘professional rata’ royalty mannequin on trendy streaming companies.
“That doesn’t look like one thing that’s aligned with the way in which the world works. As an example, in sports activities, LeBron James earns more cash than a few of his teammates – [and] not as a result of he performs extra hours per day. He performs precisely the identical variety of hours [as other players] but he earns extra…”
Credit score: TT Information Company / Alamy
2) WHO OWNS SPOTIFY TODAY?
Spotify is having a banner yr.
Not solely did the digital streaming supplier (DSP) add 10 million paying subscribers within the remaining quarter of 2022 (giving it a complete of 205 million paid subs), however its inventory value is up greater than 75% because the begin of the yr, at present buying and selling at round USD $147 per share in New York.
That marks fairly a turnaround for an organization whose value actions, not that way back, would have churned the stomachs of the hardest buyers.
After peaking at round $364 per share in February of 2021, Spotify adopted the tech markets downward, falling greater than 79%, to a backside round $75 per share in December of 2022.
Which means the corporate’s market capitalization reached a peak at round $70.5 billion, earlier than falling to some $14.5 billion, then recovering to its present market cap of round $28 billion.
Notably, its share value right this moment is near the place it stood in early April 2018, when it closed on its first day of buying and selling at $149.01.
All in all, it’s been fairly a rollercoaster journey. However who, precisely, owns this Stockholm-headquartered firm that has revolutionized music consumption in our time?
Credit score: Sthanlee B. Mirador/Sipa USA/Alamy
3) SIR LUCIAN GRAINGE REMUNERATION PACKAGE APPROVED BY UNIVERSAL MUSIC GROUP SHAREHOLDERS
At Common Music Group’s Annual Common Assembly on Thursday (Might 11), UMG’s Board tabled a proposal to reappoint Sir Lucian Grainge as its Govt Director (a place he holds along with being the corporate’s Chairman and CEO) for a five-year time period (ending on Might 1, 2028).
The board additionally sought approval to regulate a coverage for Govt Administrators with respect to a brand new remuneration package deal for Grainge. Each resolutions had been adopted on Thursday.
Because of this Sir Lucian Grainge has formally been re-appointed as UMG’s Govt Director for 5 extra years, and it additionally implies that his new pay package deal has been authorized by shareholders, too…
4) GOOGLE TRAINED ‘EXPERIMENTAL AI’ TO GENERATE HIGH-FIDELITY SONGS FROM TEXT PROMPTS. NOW IT’S AVAILABLE TO THE PUBLIC
In January, Google unveiled MusicLM, an ‘experimental AI’ software that may generate high-fidelity music from textual content prompts and buzzing.
The software is now obtainable for the general public to check out.
Google explains that on the public-use stage, the software works by typing in a immediate like “soulful jazz for a cocktail party”.
The MusicLM mannequin will then create two variations of the requested tune for the individual inputting the immediate. You possibly can then vote on which one you like, which Google says will “assist enhance the AI mannequin”.
The mannequin was educated on 5 million audio clips, amounting to 280,000 hours of music at 24 kHz…
5) KING & PRINCE SOLD 1.2M PHYSICAL COPIES OF THEIR LATEST ALBUM ‘MR.5’ IN ITS FIRST WEEK IN JAPAN, BECOMING THE MARKET’S FASTEST-SELLING ALBUM THIS YEAR
King & Prince and Common Music Japan have set the file for 2023’s fastest-selling album in Japan.
The group’s newest album launch, Mr.5 (launched on April 19), achieved bodily gross sales of greater than 1.2 million in its first week.
Mr.5 marks the band’s fastest-selling album thus far, attaining CD gross sales of greater than 1.03 million copies in its first 48 hours, with 916,000 gross sales on its first day on sale….
