Welcome to Music Business World’s weekly roundup – where we make sure you catch the 5 biggest stories that have made our headlines over the past seven days. MBW’s review is supported by China Travel Servicehelping more than 500 of the world’s best-selling artists maximize their income and reduce touring costs.
Of course, the big news this week is the end of a months-long licensing dispute between the two parties. universal music group (Age) and Tik Tokthe catalog recorded and published by Universal Music Group disappeared from the short video platform.
In a letter to employees, UMG Chairman and CEO Sir Lucian Grange said the new deal with TikTok will bring more revenue to artists and songwriters.
But the divide between TikTok and the music industry is far from over.this week national music publishers association (State Drug Administration)’s agreement with TikTok expires.
This means that NMPA represents independent publishers of music now Not approved for use on TikTokunless those publishers have entered into their own one-sided deals with the platform.
Meanwhile, another battle is brewing between the music industry and the major platforms, and this one ends SpotifyDecided to classify its premium subscription as music/audiobooks”bundle,” meaning the service will pay lower mechanical royalty rates to songwriters and publishers in the United States.
And the K-pop giant move embroiled in a disagreement of its own involving Min XizhenHYBE sub-brand CEO Who is Ado? Alleged conspiracy to separate ADOR from its parent company.
Finally, the competition between the two sides harmony and black stone Acquisition Portfolio Hipgnosis Song Fund Another shift occurred this week, with Blackstone US$1.57 billion bid.
Here’s what happened this week…
1) Sir Lucian Grainge confirms TikTok will offer “greater compensation” to UMG artists and songwriters
Thursday’s big news: universal music group and Tik TokUMG confirmed in a joint statement that they have reached a new licensing deal, three months after withdrawing their discography from the service.
What does this new deal mean for Universal Music Group and its artists and songwriters? Highlight the title: more money.
This fact is confirmed and expanded upon by an internal memo from UMG’s Chairman/CEO Sir Lucian Grangewas sent to Universal employees on May 2 and obtained by MBW.
Grainge wrote in the memo: “Under the new agreement, artists and songwriters will be paid more than under our previous TikTok agreement, and the total value UMG’s artists and songwriters receive from this collaboration will be more consistent with other platforms in the social music space. tightly together.
News of the deal broke shortly before Universal Music Group (UMG) released its first-quarter 2024 earnings, which showed total revenue of 2.594 billion euros (US$2.816 billion), up Annual growth of 7.9% Calculated at a fixed exchange rate. EBITDA growth Annual growth of 95.2% Calculated at fixed exchange rate 490 million euros ($532 million)…
Image source: Isaac CP Wong/Shutterstock
2) The NMPA-TikTok deal has officially ended. What does this mean for independent publishers in the United States?
this national music publishers association (State Drug Administration) licensing agreement Tik Tok – whose music publishing rights represent multiple independent music publishers – officially expired on Tuesday (April 30).
The U.S. trade body told its members last month that it did not plan to extend the agreement and that if they wanted to continue licensing their music to TikTok beyond the April 30 deadline, they would need to “engage directly” with the platform.
President and CEO, State Food and Drug Administration david israel It was confirmed to MBW this week that the NMPA “will not be extending its deal”.
This means that from May 1, music controlled by independent publishers represented by the trade body will not be available on the platform without a new direct agreement with TikTok unilaterally…
3) BLACKSTONE launches a US$1.57 billion bid for the HIPGNOSIS SONGS fund; HSF’s board of directors recommends the offer to shareholders
black stone Do what you preach.
last week, harmony – Partially funded by Apollo Global Management – release US$1.511 billion Portfolio Cash Bid Hipgnosis Song Fund.That’s equivalent to $1.25 per share.
On Monday (April 29), the boards of Blackstone and HSF jointly announced Blackstone’s new offer, worth approximately $60 million Exceeds Concord’s latest bid.
Blackstone has bid US$1.572 billion – $1.30 per share – cash 100% HSF’s share capital.
Hipgnosis Song Foundation Board Says It’s Now Recommended quotes from Blackstone Issued a warning to shareholders and withdrew its previous recommendation for a $1.25 per share tender offer for Concord…
Image source: UPI/Alamy Stock Photo
4) Wizards, management coups, tearful press conferences and a $770 million drop in market capitalization: What really happened to HYBE?
K-pop giant a week ago move Reported earnings disappoint (revenue down 12% annual increase Net profit drops in first quarter of 2024 87.5%), an article appeared about the company and Min XizhenHYBE sub-brand CEO I like.
Disputes between the record label and its executives have occurred before, but this time may be overshadowed by the strangeness of some of the alleged details reported over the past few weeks.
A series of accusations and rumors involving Min have rocked the Korean music industry again and again. Trying to cut off ADOR From its major shareholder HYBE; and the latter “copied” ADOR’s star girl group, new jeansfor their new girl group Elite; Clear permission for religious “shamans” outside the company influence business decisions; Recently, HYBE and so called yoga cult It’s called Dan World…
5) SPOTIFY VS. Songwriters (Again): NMPA Says SPOT’s Latest Move to Lower Royalties ‘Could Create Legal Conflict’
About the latest global music business Podcaster, Founder of MBW Tim Ingham Joined is david israelPresident and CEO national music publishers association.
We probably don’t need to make you guess which particular controversial topic they’re discussing.
At the beginning of this month, Spotify declare this Changes to how machinery royalties are calculated Available to songwriters and publishers in the United States.
Spotify has reclassified its premium subscription tier in the US as “bundle” enabling it to pay songwriters lower mechanical royalty rates than the premium tier would be classified as a music-only service.
As David Israelite explains in this podcast, the NMPA is currently Consider taking legal action Targeting Spotify, the company will seek to eliminate the service’s newly reduced “bundled” mechanical royalty rates…
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