Welcome to Music Business Worldwide’s weekly roundup. Here you can be sure to catch his 5 biggest stories that have made headlines in the past 7 days. MBW Roundup is supported by: Centriphelps over 500 of the world’s best-selling artists maximize income and reduce touring costs.
With 2024 just around the corner, it’s almost time to compile the numbers for 2023.
One company that is leading the way in this space is streaming services sound cloudtold MBW this week that 16 years after its founding, it has finally reached that elusive promised land. Annual profitability.
CEO Elia Seaton told MBW that the company expects to: 2 million euros EBITDA will be positive in 2023, significantly recovering from the previous year 29 million euros Additionally, the company achieved eight consecutive months of profitability on an EBITDA basis.
This week, MBW goes even deeper. Spotify plans to change its payment model in the new year. Planning details include: The truck must have the bare minimum; 1,000 There is also a minimum number of streams in the previous 12 months to be eligible for royalty payments. unique listener This is the amount required for a song to receive payment, but Spotify hasn’t disclosed the exact amount.
In other news, Universal Music Group (UMG)The world’s largest music copyright holder’s stock price soared. €25.77 at Euronext Amsterdam on Tuesday (December 12).As a result, UMG’s market capitalization is 46.944 billion eurosor thereabouts 50.68 billion USD At the current exchange rate.
Additionally, Sony and Warner are suing US internet provider Altice over alleged music copyright infringement on the network, while MBW responded to an interview. Drew Simmonsmanager of breakout artists Noah Kahan.
Here’s what happened this week…
1) Spotify is pursuing annual revenue. Soundcloud is already there.
1) Spotify is pursuing annual revenue. Soundcloud is already there.
sound cloud has been around for 16 years and is experiencing new things. It’s annual profitability.
According to company data shared with Music Business Worldwide, SoundCloud is currently on track to post a slim but positive EBITDA for calendar/fiscal year 2023.
The company predicts: 2 million euros EBITDA in 2023, CEO Elia Seaton MBW shows a significant improvement over previous years. 29 million euros The company posted negative EBITDA in 2022.
Additionally, Seaton says SoundCloud is currently accomplishing the following: Eight consecutive months of profitability on an EBITDA basis.
“Achieving profitability is important because it confirms that we are pursuing the right strategy and taking the necessary steps to turn the business around,” Seaton tells MBW.
2) Universal Music Group’s stock reaches its highest point in two years, making it worth more than $50 billion.
2) Universal Music Group’s stock reaches its highest point in two years, making it worth more than $50 billion.
Universal Music Group (UMG) We will end 2023 on a high note.
of The world’s largest music copyright holder ended the trading day on Amsterdam Euronext on Tuesday (December 12) at a year-to-date high.
In fact, the stock price Euro €25.77UMG ended the day with the highest public valuation. 2 years.
according to euronext Data, converting UMG’s stock price to market capitalization valuation: Euro 46,944 million euros.
It’s worth it in USD at the current exchange rate 50.68 billion USD.
This is the highest price for Universal’s share price in more than 24 months, since December 7, 2021 (€25.78).
UMG’s stock price peaked in mid-November 2021, with the highest closing stock price on that day. 27.72 euros…
3) Sony and Warner hit US internet provider Altice with $1.6 billion lawsuit over alleged music copyright infringement on the network
3) Sony and Warner hit US internet provider Altice with $1.6 billion lawsuit over alleged music copyright infringement on the network
Internet service provider Altice USA is facing a new lawsuit from music rights holders who say it enables widespread music copyright infringement through its services.
Late last year, Altice was hit with a $1 billion lawsuit on behalf of music rights holders including Universal Music Group, BMG and Concord Music Group. They sought to hold internet providers accountable for “millions” of alleged copyright violations. their song.
The case remains ongoing after a judge in the U.S. District Court for the Eastern District of Texas denied Altice’s motion to dismiss earlier this year.
Sony Music Entertainment and Warner Music Group are currently filing a similar lawsuit in the same U.S. District Court, alleging that Altice “knowingly contributed.”[ing] to, and reap[ing] Huge profits are being made from massive copyright infringement by thousands of subscribers…
4) “We’re looking to Ed and Taylor for inspiration right now.”
4) “We’re looking to Ed and Taylor for inspiration right now.”
when Drew Simmons first found Noah Kahan upon sound cloud, he was sure he had found someone special. The problem is he only has one. The feelings were not mutual.
“Noah had no concept of what the music industry was,” Simmons laughs. “He didn’t think I was real – he thought I was real catfish fishing he. “
So Simmons drove hundreds of miles to rural Kahan. vermont state He returned home to convince the musician that he was not only real, but a manager who would help the nascent singer-songwriter take on the world.
The fact that Kahan is the hottest right now groundbreaking act On Earth, Simmons is shown to have succeeded in his mission.
However, Kahan’s support lasted less than a year; amos lee Concerts at Red Rocks and selling out his own storied venue in July didn’t happen overnight. viral success.
The rise of Mr. Kahan old story of Artist developmentAlthough he is a reversal of the traditional alternative-to-pop journey…
5) Explaining exactly how Spotify’s new 1,000 streams per year loyalty policy works…
5) Explaining exactly how Spotify’s new 1,000 streams per year loyalty policy works…
spotify will be introducing major updates to the way recorded royalties are calculated next year.
From early 2024 onwards, trucks must have reached at least 1,000 streams In the past 12 months, generate royalties on the platform.
The policy is one of the most controversial in a series of new changes coming to the platform in the new year, first reported by MBW in October and then confirmed by Spotify in a blog post last month .
SPOT wrote in a blog post that the reasons behind the new monetization policy are:Better distribute small payments That doesn’t reach the artists. ”
The company also claims that “tens of millions” of One hundred million– Additionally, tracks hosted on that platform are “streamed between” One and 1,000 On average, how many times have these tracks been generated in the past year? $0.03 Monthly. ”
The blog post continued: “Labels and distributors minimum amount For withdrawals (usually between $2 and $50 per withdrawal), banks charge a transaction fee (usually between $1 and $20 per withdrawal). Not reaching the uploader. And these small payments are often forgotten. ”
According to Spotify, these little “ignored payment” is summed up, $40 million In 2022 alone, the company “may instead increase payments to artists who rely most on streaming revenue…” it added.
MBW’s Weekly Round-Up is supported by Centtrip and helps over 500 of the world’s best-selling artists maximize their income and reduce touring costs.world music business