Industry News Recap: YouTube Spars With IFPI Over $1B Royalties, Sony Unifying Arms, Pandora goes Premium
Posted by Glen Sears | December 12, 2016 9:28 am | No Comments
YouTube Reports $1 Billion Paid to Recording Industry Through Advertising This Year
Story of the Week
After a year of sustained and withering criticism from the recorded music industry — and one day after Lyor Cohen began as its global head of music — YouTube has announced a topline stat intended as a strong defense of its business model and its contributions to the global recording industry.
In a blog post this morning YouTube’s Chief Business Officer Robert Kyncl writes that “in the last 12 months, YouTube has paid out over $1 billion to the music industry from advertising alone.” (Google itself reported ad revenue of $19.8 billion in the third quarter.) In a study released earlier this year, Statista found that 63 percent of Americans had listened to music on the platform at some point.
Top Music News
IFPI Hits Back At YouTube Over $1bn Payouts Claim. “Google has today issued more unexplained numbers on what it claims YouTube pays the music industry. The announcement gives little reason to celebrate, however…YouTube is generating revenues of just over $1 per user for the entire year. This pales in comparison to the revenue generated by other services…For example, in 2015 Spotify alone paid record labels some $2 billion, equivalent to an estimated $18 per user.”
YouTube Strikes Settlement Deal Over Unpaid Royalties with NMPA. The dollar amount of the settlement were not disclosed — a press release on the news says “millions of dollars in previously unclaimed music royalties” — music publisher sources had previously speculated to Billboard that it could land in the same range as the $30 million payout by Spotify.
Sony Eyes Unification Of Record, Publishing Arms. Sony Corp. is considering a major reorganization, and the recorded music division Sony Music Group and music publisher Sony/ATV possibly would unite in a division separate from film and gaming.
Global Music Publishing Royalties By The Numbers. Glenn Peoples comments on the International Confederation of Societies of Authors and Composers recently-issued report which has shed some light on the world of music publishing, with free on-demand services once again being targeted.
Apple Music Reaches 20M Subscribers, Adding 1M A Month. Apple is enjoying the fruits of this growth too: the company recently said its music revenue was up 22% in the third quarter thanks to Apple Music, with services a bright spot for the company amid declining hardware sales.
Pandora Reveals Its Spotify Competitor, Pandora Premium. After a just under a year of re-engineering Rdio, the well-liked streaming service it purchased last December for $75 million, and the launch of a mid-tier subscription service in September, Pandora has pulled the curtain off of its all-you-can-eat streaming service, called Pandora Premium, expected to be released in the first quarter of next year.
Australian Creators Launch Campaign Against Proposed Copyright Reform. “At a time when copyright is working in practice as it should, and just when the culturally-rich and economically vital business of music is getting back on its feet, it’s difficult to fathom why measures such as those relating to safe harbour expansion or so-called ‘fair use’ should be contemplated by government”.
Our best wishes for a great week! – MediaNet
Posted by Glen Sears | April 18, 2016 9:44 am | No Comments
Story of the Week
IFPI 2016 Global Music Report: Digital Revenues Surpass Physical for the First Time
The global recorded music business reached an important tipping point in 2015: Digital services now account for 45 percent of recorded music revenue and outstripped physical revenue for the first time, according to numbers released Wednesday by the global trade body IFPI.
The global snapshot is equally positive. Low single-digit revenue growth was registered by North America (+1.4 percent) and Europe (+2.3 percent) while Asia improved 5.7 percent and Latin America rose 11.8 percent behind 80.4-percent growth in streaming revenue.
The most momentum happened with subscription services. Subscription revenue, excluding revenue from some services’ free tiers, jumped $58.9 million to $2 billion. The number of subscribers grew 66 percent to 68 million. The number of new subscribers, 27 million, was twice the 28-million subscriber gain in 2014 and over three times the growth in 2013.
Top Music News Stories
Analyst Mark Mulligan Dives Into IFPI’s GM2016 Report, Surfaces Surprising Takeaways. “Revenue was flat, downloads and physical are both still falling, streaming growth accelerated, ad supported revenue fell, and streaming ARPU is up but subscription ARPU is down.
War of Words: Labels and Trade Groups Target YouTube’s ‘Value Gap.’ Labels define this “value gap” as the difference between what YouTube actually pays and what they believe it should pay. Labels argue that safe harbor “distorts” the market by giving services leverage in negotiations.
SoundCloud and Sony/ATV Announce Licensing Deal in Europe. SoundCloud wants to take its GO paid subscription service global; and a new deal with Sony/ATV, who has had a deal with SoundCloud in the U.S. since the 2014 launch of its monetization efforts, extends the partnership to Europe.
The Launch Of SoundCloud Go Leaves Unanswered Questions. Nicole Daley, speaking about Soundcloud Go, says “although the service has interesting potential, there remain several unanswered questions regarding things like how artists will get paid, or how royalties are being calculated.”
Facebook Tackles ‘Freebooting’ With Rights Manager Tool. The social media giant has launched Rights Manager, an admin tool which is intended to curb the dubious practice where Business Pages and celebs can rip videos from elsewhere, repost the copyrighted content on Facebook and grow their brands while robbing the content creators of views.
CÜR Media Raises $2M To Pay Labels, Launch Streaming Service Aimed At Casual Music Fans. CÜR Media has announced the completion of $2 million in financing led by Intuitive Venture Partners and Katalyst Securities. CÜR Music, currently in public beta, is a streaming music service aimed at more casual music fans with tiers beginning at $1.99 per month after a 14-day free trial.
ASACP Sues 10 Venues That Refuse To Pay To Use Music. Over the past two years, and in many cases longer, ASCAP says it made numerous attempts to offer to license these venues and educate the owners about their obligations under federal law.
Our best wishes for a great week! – MediaNet
Posted by Glen Sears | July 9, 2015 11:06 am | No Comments
After many long discussions from industry groups worldwide, in February the International Federation of the Phonographic Industry (IFPI) announced it would be adopting a global album release date. According to the IFPI, Friday (not Tuesday, as it is in the U.S.) is the day most global music fans want to receive their new music.
“Their love for new music doesn’t recognise national borders. They want music when it’s available on the internet — not when it’s ready to be released in their country. An aligned global release day puts an end to the frustration of not being able to access releases in their country when the music is available in another country.” – Frances Moore, IFPI
Well music fans, that day is tomorrow. On Friday July 10th 2015, major and major independent labels will begin to release new music on Fridays, instead of the traditional Tuesday. What does this mean for you?
Consumers: New releases will be available for download, purchase, and streaming on Fridays instead of Tuesdays.
Labels: Most digital music providers (MediaNet included) require a week lead time for releases. This means the ideal time to submit your new tracks and albums is the Friday prior to the release date.
Despite opposition from various independent labels on choosing Friday, support is generally high for a global release date. The IFPI has released a viewpoint article detailing the rationale behind the switch. We encourage all labels and consumers to read it.
Have more questions about what the switch means for your catalog? Email us here!
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